Funding apprenticeships as a smaller business
You don't need to pay the apprenticeship levy to fund apprenticeships. The government covers most of the training cost for smaller employers, and often all of it for younger apprentices. Here's what you'd pay and how to start.
What you'd pay
If your annual pay bill is under £3 million, you don't pay the levy. Instead you co-invest with the government: from August 2026 you pay 25% of an apprenticeship's training and assessment cost, and the government pays 75%. There's nothing to pay up front, and a national funding band caps the training cost. You always pay the apprentice's wage.
Funding at a glance
Three ways to fund an apprenticeship
Government co-investment
You pay 25% of the training cost, the government pays 75%. This is the standard route for non-levy employers.
Full funding for younger apprentices
For apprentices in particular age groups, often at employers with fewer than 50 staff, training can be fully funded, so your training cost is nil.
A levy transfer
A larger employer can transfer unused levy to fully fund your apprenticeship, at no training cost to you. We can help you find one.
Funding for smaller employers: common questions
Do I have to pay the levy to take on an apprentice?
No. Most smaller employers don't pay the levy and still access funding.
How much will I pay?
From August 2026, 25% of the training cost, with the government paying 75%. For some younger apprentices, training is fully funded.
What counts as a small employer?
Generally an employer with fewer than 50 staff for the purposes of full funding for younger apprentices.
Can I get my apprenticeship fully funded?
Yes, through full funding for eligible younger apprentices or by receiving a levy transfer.
How do I get started?
You set up an apprenticeship service account to reserve funding, then we handle the rest with you.
Keep reading
Start with a conversation
Tell us about your team and we'll show you what's funded and what you'd pay.