Apprenticeship Funding
Apprenticeships are an affordable training option for many businesses.
The costs of apprenticeship training for employers can vary depending on the programme you choose, the size of your business, and the age of your apprentice. For learners, apprenticeship training costs nothing at all.
As of 2026, training is fully funded for apprentices under 25 in SMEs - the move made to reduce costs and burdens for non-levy paying businesses and deliver more opportunities for young people to kick start their careers.
Growth & Skills Levy for large organisations
All employers with a wage bill of over £3 million per annum are required to pay 0.5% of their total wage bill into the Growth & Skills Levy (former Apprenticeship Levy).
The Levy can be used to pay for training new and existing staff through apprenticeships.
The levy can also be used to fund training for existing staff who are over 19 years of age through recently announced apprenticeship units.
After 12 months, the levy usually resets - therefore, it is important to start the planning process early to make sure you take the full advantage of the available funding.
We can support you to maximise your levy strategy and make the most of the funding on offer.
Apprenticeship funding for small and medium business
If your business has a salary bill of less than £3 million, you will not contribute to the Growth & Skills Levy. Instead, if your apprentice is 25+ years of age you will pay only 5% of your apprentice’s training and assessment fees, while the Government contribute 95%.
Training is fully funded for all apprentices under 25 in SMEs.
Fully funded training can also be accessed through a levy transfer partnership with a levy paying business.
Note: "Fully funded" refers to the training and assessment costs paid to the training provider, not the apprentice's wages, which are the responsibility of the employer.
Other incentives
- £1,000 Incentive: SMEs receive a £1,000 payment for hiring an apprentice aged 16–18, or 19–24 with an EHC plan/care history.
- NI Exemptions: Employers do not pay National Insurance (NI) contributions for apprentices under 25, providing further cost savings.
Digital Apprenticeship Service
All employers are required to set up an online Apprenticeship Service account to recruit and manage apprentices, as well as to access their Levy funds. The following information will help guide you through the process.
If you would like support in setting up and using your Apprenticeship Service account, please contact us on employer.training@gloscol.ac.uk or 0345 155 2020 and we would be happy to help.