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Funding options

You can get help from the government to pay for apprenticeship training

The amount you get depends on whether you pay the apprenticeship levy or not. You pay the levy if you’re an employer with a pay bill over £3 million each year. 

Employers will receive an increased incentive payment of £3,000 for new apprentices of any age who start their employment between 1 April and 31 January 2022..

Apprentices who joined your organisation before 1 April 2021

For new apprentices who joined your organisation between 1 August 2020 and 31 March 2021, you now have until 31 May 2021 to apply for your incentive payment. Watch our how-to video which explains the application process.

When will I receive the incentive payment for hiring a new apprentice?

We cannot make any payments until we’ve received and verified your organisation and finance details. We’ll make the payment in 2 equal instalments for each apprentice. Find out more about how we make incentive payments.

If you don't pay the levy

Employers contribute 5% towards the cost of the training and assessing for your apprentice, the Government will fund the rest (95%)

You may also be entitled to additional cash incentives for undertaking apprenticeships programmes depending on your business and apprentice circumstances.

If you do pay the levy

The apprenticeship levy was introduced in 2017 as a government scheme to fund apprenticeships. Employers with a payroll of more than £3 million must pay a 0.5% levy on their total payroll, offset by a £15,000 government allowance. The levy is paid monthly through PAYE alongside income tax and national insurance contributions.

Your levy contributions will then appear in your Digital Apprenticeship Service Account, allowing you to spend your contributions on apprenticeship training and assessment. Employers have up to 24months to spend their levy, with any used unused funds returned to Government.

These levy contributions can then be pulled down to fund your apprenticeship training programmes.

Incentive payment

Employers will receive an increased incentive payment of £3,000 for new apprentices of any age who start their employment between 1 April and 30 September 2021.

Apprentices who joined your organisation before 1 April 2021

For new apprentices who joined your organisation between 1 August 2020 and 31 March 2021, you now have until 31 May 2021 to apply for your incentive payment. Watch our how-to video which explains the application process.

When will I receive the incentive payment for hiring a new apprentice?

We cannot make any payments until we’ve received and verified your organisation and finance details. We’ll make the payment in 2 equal instalments for each apprentice. Find out more about how we make incentive payments.