Apprenticeship Funding and Incentives

Funding for apprenticeships depends on the size of the employer.

Levy paying employers

Large employers with a wage bill of over £3m per annum pay a levy to the government which is set aside to fund apprenticeships with that employer.

Over 50 employees

Employers with over 50 employees but a wage bill under £3m per annum will contribute 5% towards their apprenticeship funding. The government will pay the other 95%. These employers are also eligible for incentives, such as £1000 per apprentice for employing a 16-18 year old or a 16-24 year old care leaver/someone with an Education and Health Care Plan (EHCP).

Under 50 employees

Small employers with under 50 employees get 95-100% of their apprenticeship funding from the government. For 16-18 year olds or a 16-24 year old care leaver/someone with an Education and Health Care Plan (EHCP) the employer will receive 100% of funding.

Check our funding arrangements guide for full details – also available on the document list on the left.

Additional Funding Available

From 1st October 2021 to 31st January 2022 employers are apply to apply for a payment of £3,000 for apprentices with an employment start date from 1st October 2021 to 31st January 2022.

Eligibility

You will be able to apply for a payment of £3,000 for apprentices with an employment start date from 1st October 2021 to 31st January 2022 once applications open in January 2022.

What you can use the payment for?

The payment is different to apprenticeship levy funds, so you can spend it on anything to support your organisation’s costs. For example, on uniforms, your apprentice’s travel or their salary. You do not have to pay it back.

The payment is in addition to the existing £1,000 an employer will already get for taking on an apprentice who is either:

aged 16 to 18 years old or under 25 and has an education, health and care plan or has been in the care of their local authority

How to apply

To receive the payment, you must submit an application for each eligible apprentice using your apprenticeship service account.

You will need to add the apprentices to your apprenticeship service account first.

Further details can be found here Government Incentive Payments