Apprenticeship Funding

Apprenticeship funding for Employers in England

Investing in Apprenticeships is one of the most cost-effective ways for employers in England to develop skilled talent, boost productivity, and fill skills gaps. The UK government offers significant financial support to help businesses in England to fund Apprenticeship training, whether you’re a large employer paying the Apprenticeship Levy or an SME looking for affordable upskilling options.

Here’s everything you need to know about how Apprenticeship funding works, the benefits, and how to access financial support for your business.

How does Apprenticeship funding work?

The UK government provides funding to employers in England to cover Apprenticeship training and assessment costs. The amount you receive depends on whether your business is a Levy-paying employer or a non-Levy employer.

• Large businesses (Levy payers) – Use their Apprenticeship Levy contributions to fund training.
• SMEs (Non-Levy payers) – Receive up to 95% government funding to support Apprenticeship costs.

By leveraging Apprenticeship funding, employers can train new employees or upskill existing staff with minimal financial investment.

Apprenticeship Levy: How it works for large Employers

The Apprenticeship Levy applies to businesses with a payroll of £3 million or more. These employers must contribute 0.5% of their annual payroll into a dedicated Apprenticeship fund, which can be used to cover the full cost of Apprenticeship training and assessment.

Key benefits of the Apprenticeship Levy:

• Maximise your Levy funds – Use contributions to develop a highly skilled workforce.
• Upskill existing employees – Train current staff in leadership, digital skills, and technical roles.
• Future-proof your workforce – Create a pipeline of skilled professionals tailored to business needs.
• Transfer unused funds – Share up to 25% of Levy funds with smaller businesses in your supply chain.

Challenges of the Apprenticeship Levy:

• Use it or lose it – Funds expire after 24 months if not used.
• Limited to Apprenticeship programmes – Funds cannot be used for other types of training.
• Additional costs – Levy covers training, but salaries must be paid separately.

Non-Levy Employers: Government-Funded Apprenticeships for SMEs

If your business has a payroll under £3 million, you don’t pay into the Apprenticeship Levy.  Instead, the Government funds up to 95% of Apprenticeship costs for non-Levy employers, making Apprenticeships a cost-effective way to develop talent.   Fareport can match SMEs with a large employer who wants to support SMEs with their Apprenticeship training.  This means you can access full funding for all our Apprenticeship courses.  We will support you with the administration of transferring the funds from large employers including Hampshire County Council and Oxford University.

Funding for SMEs:

• 95% government funding – Employers only contribute 5% of training costs.
• 100% funding for small businesses – If you have fewer than 50 employees, the government covers 100% of training costs for Apprentices aged 16–18 (or 19–24 with an Education, Health and Care Plan).
• £1,000 incentive payments – Additional funding for hiring 16–18-year-old Apprentices.

Benefits of Non-Levy Apprenticeship funding:

• Affordable workforce development – Train employees for a fraction of the cost of recruitment.
• Fully funded options for small businesses – 100% government funding for eligible SMEs.
• Access high-quality training – Apprenticeships cover a wide range of industries and skill levels.

Example cost for SMEs:

For as little as £250, you can train an Apprentice in a high-demand role!

How Employers can access Apprenticeship funding

The process of accessing Apprenticeship funding is simple and straightforward:

Step 1: Register for an Apprenticeship Service Account

All employers must set up a Digital Apprenticeship Service (DAS) account to manage Apprenticeship funding and payments.

Step 2: Choose an Approved training provider

Select an approved training provider (like Fareport Training) to deliver high-quality Apprenticeship training.

Step 3: Recruit or Upskill Employees

• Hire new Apprentices for your business.
• Enrol existing employees on an Apprenticeship for career progression.

Step 4: Secure Government Funding

• Levy payers – Use existing Levy funds for training.
• Non-Levy employers – The government will pay 95% of training costs directly to your training provider.

Is Apprenticeship funding worth it for Employers?

YES! Apprenticeships are an affordable, practical way to develop talent and fill skills gaps in key industries such as:

• Data Analytics – Train employees in business intelligence & reporting.
• Leadership & Management – Develop future team leaders & managers.
• Marketing & Digital Skills – Improve social media & content marketing.
• Health & Social Care – Build a skilled workforce for care settings.

Advantages of Apprenticeship funding for Employers:

• Cost-effective staff development – No recruitment fees, minimal training costs.
• Improved staff retention – Employees are more likely to stay with employers that invest in training.
• Enhanced business performance – Apprentices bring new ideas & skills to drive innovation.
• Access to government funding – Up to 95% of costs covered for SMEs.

Start accessing Apprenticeship funding today!

Whether you’re a large business looking to maximise Levy funds or an SME looking for cost-effective training, Apprenticeships are a valuable tool for workforce development.

If you would like a free consultation to discuss your options please get in contact with us.