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How apprenticeship funding works

The government funds the training and assessment of apprenticeships, for businesses of every size. How much you pay depends on one thing: whether your annual pay bill is over £3 million. This guide explains both routes and the 2026 rules.

What an apprenticeship costs

If you pay the levy

Employers with a pay bill over £3 million pay 0.5% of it into an apprenticeship service account, topped up 10% by the government, and spend those funds on training and end-point assessment. From August 2026, any spend beyond your levy funds is co-invested at 25% by you and 75% by the government.

Understand the levy

If you do not pay the levy

Smaller employers use government co-investment: from August 2026 you pay 25% of the training cost and the government pays 75%. For younger apprentices, and for small employers in particular, training is often fully funded, so your cost can be nil.

Funding for smaller employers

What the government covers

  • 75%

    of training cost for co-invested apprenticeships

  • 100%

    funded in many cases for younger apprentices

  • £0

    to receive a levy transfer

  • Up to £27,000

    top funding band (verify)

    Funding bands explained

    Every apprenticeship sits in a funding band, set nationally, which caps how much government funding can pay for its training and assessment. Bands range from a few thousand pounds up to £27,000 for the most specialist programmes. The band covers training and end-point assessment only, not wages, and you negotiate the actual price with your provider up to the band maximum. If you choose a provider who charges above the band, you pay the difference yourself.

    Not covered

    Funding never pays apprentice wages, travel, or your own staff time. Budget for those separately.

    Apprenticeship funding: common questions

    How is apprenticeship funding calculated?

    By the funding band of each apprenticeship and your status as a levy or non-levy employer. Levy payers draw on their account; others co-invest with the government.

    What is the difference between levy and non-levy funding?

     Levy payers spend funds they have already paid in. Non-levy employers share the cost with the government and pay nothing in advance.

    What does apprenticeship funding cover?

    The training and end-point assessment of the apprenticeship, up to the funding band. It does not cover wages or other employment costs.

    What are apprenticeship funding bands?

    National caps on the government funding for each apprenticeship standard, currently from a few thousand pounds up to £27,000.

    What changed for 2026?

    From August 2026 the employer co-investment rate rises from 5% to 25%. Planning spend and using levy transfers help manage the change.

    See the costs

    Want the figures for your situation?

    What an apprenticeship costs

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