Apprenticeship Funding
Apprenticeships are a cost-effective way to recruit new talent, upskill existing staff and develop future skills within your business.
Government funding is available to support apprenticeship training costs for employers across England, with funding dependent on the size of your organisation and the age of the apprentice.
Understanding the Apprenticeship Levy
Employers with an annual payroll above £3 million pay the Apprenticeship Levy.
The levy is charged at 0.5% of an employer’s annual pay bill, with a £15,000 annual allowance to offset against the payment. Levy funds are accessed through the Apprenticeship Service account and can be used to pay for apprenticeship training and assessment.
Training 2000 can support you with:
- setting up your Apprenticeship Service account
- selecting the right apprenticeship standard
- managing apprentice onboarding
- accessing available funding support
Levy-Paying Employers
If you pay the Apprenticeship Levy, you can use your levy funds to pay for apprenticeship training and end-point assessment.
Where levy funds are exhausted, employers currently contribute 5% towards apprenticeship training costs and the government funds the remaining 95% for apprenticeships starting before 1 August 2026.
Large employers can also transfer up to 50% of unused levy funds to other employers to support apprenticeship training across supply chains and local businesses.
Non-Levy Paying Employers
If your organisation does not pay the Apprenticeship Levy, the government will usually fund 100% of apprenticeship training costs if you employ a 16-21 year old apprentice.
If your apprentice is aged 22 or above then the government will usually fund 95% of apprenticeship training costs, with employers contributing the remaining 5%.
Financial support for hiring a young person
Hiring young talent brings fresh ideas and strengthens an employer’s workforce, enabling them to develop the skills needed to meet the demands of the future. You could be eligible for:
- £1000 – for employers who hire apprentices aged 16-18
- £2000 – for SMEs who hire apprentices aged 16-24 (available from October 2026)
- £3000 – for employers who hire 18-24 year olds who have been on Universal Credit for over 6 months (available from June 2026)
- £2000 – for employers who hire foundation apprentices aged 16-21
- No National Insurance contributions – on apprentices under 25
** Financial incentives can be combined if the apprentice/employer meets the criteria **
Apprenticeship Standards focus on:
- Knowledge
- Skills
- Behaviours
Followed by an end point assessment to grade the understanding of the knowledge, skills and behaviours. This varies depending on the Apprenticeship, but could be a multiple choice exam, discussion and practical assessment.
CITB Apprenticeship Grants for Scaffolding Apprenticeship
CITB Apprenticeship Grants are available for the Scaffolding Apprenticeship: £2,500 per year for attendance whilst completing the Apprenticeship and a further £3,500 achievement grant on successful completion of the full Apprenticeship
Have you got any questions? Want to discuss with a member of our expert team?
Call 01254 54659 or email businessdevelopment@t2000.co.uk
When on the Apprenticeship Service, you may need our provider number – 10006987
*All payments are subject to Government funding and completion of all relevant paperwork