How are apprenticeships funded?

In the UK, employers are responsible for paying their apprentices’ salaries but training costs can be paid for via The Apprenticeship Levy.

The Levy requires organisations with a pay bill of more than £3m to pay 0.5% of that to support apprenticeships. However, any employer can access funding for an apprentice, whether they pay the Levy or not.

The exact details differ between the nations of the UK.

England

Levy-paying employers in England can use funds in their Apprenticeship Service Account to fund apprenticeship training costs. They also receive a 10% Government top-up.  
For non-levy paying employers, the Government will fund 95% of the cost of training an apprentice, with a 5% contribution from the employer. If you employ fewer than 50 people, that increases to 100% for apprentices aged 16-18 or aged 19-24 with an education and healthcare need. Find out more on England’s Apprenticeship website.

Wales

In Wales, employers are responsible for paying their apprentice’s salary but training costs are funded by the Welsh Government. There are some financial incentives to encourage employing apprentices, depending on the needs of the workforce at the time. For more information visit the Welsh Government apprenticeship guidance for employers. 

Scotland

In Scotland, employers are responsible for paying their apprentice’s salary but training costs are funded by Skills Development Scotland. The exact amount depends on the type of apprenticeship, qualification level and age of the apprentice. There are some financial incentives for employing apprentices who are disabled and care-experienced. For more information visit the Apprenticeships Scotland website.