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How much does an apprenticeship cost?

For most employers, the training and assessment are largely funded by the government. Your real cost is usually the apprentice's wage and a share of your team's time, plus, from August 2026, a 25% contribution to training if you don't pay the levy.

Training mostly funded | You pay the wage | Often £0 training for younger apprentices

How funding works

The two costs that matter

An apprenticeship has two separate costs. The first is the training and end-point assessment (EPA), the independent check at the end. This is funded: levy payers draw on their account, and non-levy employers co-invest with the government (from August 2026, you pay 25% and the government pays 75%. A national funding band caps how much can be spent on each apprenticeship. The second cost is the apprentice's wage, which you pay in full, at least the apprentice rate of the National Minimum Wage and usually more. Budget a little for your own team's time mentoring too.

What you actually pay

  • 75%

    of training covered for non-levy employers

  • 100%

    funded in many cases for younger apprentices

  • £0

    training cost if funded by a levy transfer

  • £8/hr

    apprentice minimum wage you pay

    Example: a non-levy employer

    Take a level 3 apprenticeship in a £9,000 funding band. From August 2026 you'd contribute 25%, around £2,250 spread across the programme, with the government covering the rest. If your apprentice is younger and you're a smaller employer, that training cost may be fully funded, so you pay nothing for training. You still pay their wage.

    Example: a levy payer

    The same apprenticeship is paid from your apprenticeship service account, up to the funding band. Your direct cost is the apprentice's wage and your team's time. If your levy wouldn't otherwise be spent, the training effectively costs you nothing extra.

    Apprenticeship costs: common questions

    Is an apprenticeship free for employers?

    The training is often fully funded or heavily subsidised, but you always pay the apprentice's wage. For many younger apprentices at smaller employers, training is fully funded.

    Do I have to pay an apprentice?

    Yes. Apprentices are employees and must be paid at least the apprentice National Minimum Wage; most employers pay more, especially after the first year.

    What is the apprentice minimum wage?

    £8 an hour for apprentices in their first year or under 19; the standard age-related minimum wage applies after that.

    What other costs should I budget for?

    Mainly your team's time supporting the apprentice, and any equipment or travel specific to the role. Funding does not cover these.

    Are there extra payments available?

    The government sometimes offers incentive payments for taking on apprentices. Check what's open at the time.

    Lower your cost

    A levy transfer can fund an apprenticeship in full, at no training cost to you.

    How transfers work

    Keep reading

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