Apprenticeship Levy funding
Apprenticeship funding in England is available to all employers, regardless of size. How much you pay depends on whether you are a levy‑paying employer, the age of the apprentice, and whether levy transfer funding is used.
This page provides clear answers to common employer questions, including how the Apprenticeship Levy works, what funding is available for SMEs, and which apprenticeship costs are covered.
Access additional funding when hiring an apprentice
Receive a hiring payment of up to £2000
From 1 October 2026, eligible non-levy paying employers may be able to receive a hiring payment of up to £2,000 when recruiting a new apprentice aged 16 to 24.
The payment forms part of the Government's plans to increase the number of young people starting apprenticeships and can help reduce the cost of recruitment while supporting future workforce development.
Commonly asked questions
If you still have any questions please reach out to us and we will be happy to help.
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What apprenticeship funding is available to businesses?
Apprenticeship funding in England is available to all employers, regardless of size. The amount an employer contributes depends on whether they pay the Apprenticeship Levy, the age of the apprentice, and whether levy transfer funding is used.
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What is the Apprenticeship Levy?
The Apprenticeship Levy applies to employers with an annual pay bill of over £3 million. These employers must contribute 0.5% of their payroll into a digital apprenticeship account, which can be used to pay for apprenticeship training and end point assessment.
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How can levy paying employers use their funds?
Levy paying employers can:
1. Use levy funds to pay for apprenticeship training and end point assessment by funding apprentices of any age or level
2. Transfer up to 50% of unused levy funds to other employers (such as SMEs) – see transferring levy FAQ
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What happens if all of the funds in the digital account have been spent?
If all of the levy funds in the digital account have been spent the employer contributes to 25% of the remaining training costs, and the government contributes 75%, up to the funding band (see question on funding bands).
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Are any apprenticeships fully funded for employers?
Yes. Apprenticeship training is 100% government funded where the apprentice is aged 16–21, or, aged 22–24 and has an Education, Health and Care Plan (EHCP) or has been in local authority care.
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What are the apprenticeship funding bands?
Each apprenticeship standard has a funding band, which sets the maximum amount the government will contribute towards training and assessment. Funding bands range from £1,500 to £27,000. Employers agree the final price with the training provider and any cost above the funding band must be paid by the employer.
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What is levy transfer funding?
Levy transfer funding allows large employers to transfer unused levy funds to other organisations.
The transfer can cover up to 100% of training and assessment costs (within the funding band).
This is particularly beneficial for SMEs and is widely used to support apprenticeships across supply chains and sectors
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Are there any employer incentive payments?
Yes. For some apprenticeship standards, including foundation apprenticeships, employers may be eligible for incentive payments of up to £2,000. Eligibility depends on the apprenticeship standard and the age of the apprentice.