Apprenticeship Funding
Funding for Apprenticeship Levy Paying Employers
Do you have a salary bill of more than £3 million?
You will contribute 0.5% of your annual salary bill into the apprenticeship levy. The 0.5% will be paid through a payroll tax into a Digital Apprenticeship Service (DAS) account. The Government also adds a 10% monthly top-up, giving employers even more funding to invest in staff development.
Levy funds can be used to pay for apprenticeship training and assessment for both new and existing employees.
Unused levy funds expire after 24 months, so many organisations choose to invest them in developing their workforce before they are lost.
Education & Skills can work with you to maximise the effectiveness of your levy pot. We’ll put together a organisational wide training plan based on your levy contributions and developmental requirements.
Co-Funding for Non-Levy Paying Employers
Do you have a salary bill of less than £3 million?
The government will fund 100% of the training for apprentices aged 16-24. For anyone above this age, the government will contribute 95% of your training costs, you will contribute the final 5%. Funding can be used to train up existing staff (including graduates), or to recruit apprentices of any age. You may be eligible for a cash payment towards the training, depending on the Apprentices age and additional needs.
In many cases, employers can access additional funding or levy transfer opportunities, meaning they may pay even less. Our team can advise you on the funding options available to your organisation.
Levy Transfer Funding
Employers who pay the Apprenticeship Levy can choose to transfer up to 50% of their annual levy funds to other employers.
This enables non-levy organisations to access apprenticeship funding without having to make a co-investment contribution, subject to funding availability and approval from the transferring organisation.
If you are looking for levy transfer funding, we can help identify suitable opportunities and support you throughout the application process.
Employer Incentive Payments
From 1 October 2026, you may be eligible to receive a hiring payment of up to £2,000 when recruiting new apprentices aged 16 to 24.
As an employer, you can receive a payment towards the additional cost associated with training if, at the start of the apprenticeship, the apprentice is:
- aged between 16 and 24 years old (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
- aged between 19 and 24 years old and has either an EHC plan provided by their local authority or has been in the care of their local authority
From time to time, the Government introduces incentive payments to encourage employers to recruit apprentices.
The availability, eligibility criteria and payment values can change, so we recommend speaking to our team for the latest information on any incentives currently available.
We will always ensure you are aware of any funding opportunities or employer incentives that your organisation may be eligible to receive.
Who Can Be Funded?
Apprenticeships are available to new and existing employees aged 16 and over.
To be eligible for government funding, apprentices must:
- Be aged 16 or above
- Live in England
- Spend at least 50% of their working hours in England
- Have the right to work in the UK
- Be employed in a role that supports the apprenticeship standard
- Be able to complete the apprenticeship within the funding rules
There is no upper age limit for completing an apprenticeship, making them an excellent opportunity for employees at any stage of their career.
Funding for Young Apprentices
Additional government funding is available when employers recruit apprentices aged 16 to 24.
These additional payments help employers provide extra support during the apprenticeship and are paid in line with government funding rules.
Digital Apprenticeship Service (DAS)
The Digital Apprenticeship Service (DAS) is the Government's online system used to manage apprenticeship funding.
Through your DAS account, you can:
- Access and manage apprenticeship funding
- Approve apprentice training
- Authorise payments
- Reserve funding (for eligible non-levy employers)
- Manage apprenticeship records
- Receive transferred levy funds from other organisations
If you don't already have a DAS account, we'll support you with setting one up and managing it throughout your apprenticeship journey.
We're Here to Help
Understanding apprenticeship funding can seem complicated, but it doesn't have to be.
Our experienced team will explain your funding options, help you access the support available and manage the process from start to finish, allowing you to focus on developing your workforce with confidence.
Contact us today to find out how your organisation can benefit from government-funded apprenticeships.