Apprenticeships offer an excellent opportunity to gain hands-on paid experience while learning a qualification, but understanding how they are funded is essential for learners. At Fareport Training, we’ll help you make the most of the financial support available so you can develop your own skills and advance your chosen career.
Apprenticeship Funding
Understanding how Apprenticeship funding works can help you make informed decisions about your future, ensuring you take full advantage of the opportunities available to you. Find out more below.
How Does Apprenticeship Funding Work?
In England, Apprenticeship funding is primarily supported by the government, with additional contributions from employers. The structure of funding varies depending on factors such as the size of the employer and the Apprentice’s age.
Government Support
The UK government provides financial support to cover the cost of Apprenticeship training in England through the Apprenticeship Levy and non-levy funding systems:
- Apprenticeship Levy: Large employers with an annual payroll of over £3 million contribute 0.5% of their payroll to the levy. These funds are then used to pay for Apprenticeship training within the organisation.
- Non-Levy Employers: Smaller employers who do not pay the levy can receive government funding for up to 95% of the Apprenticeship training costs, leaving them to contribute just 5%.
Full Government Funding
For Apprentices aged 16-18, or up to 25 with an Education, Health, and Care (EHC) plan, the government fully covers the training costs for non-levy employers.
Additional Financial Support
- Incentive Payments: Employers may receive additional funding if they hire Apprentices under 19 years old.
- Travel and Hardship Support: Some Apprentices may be eligible for bursaries or grants to help with travel costs and learning materials.
Benefits of Apprenticeships
Apprenticeships provide a range of advantages for individuals like you, helping you build skills while earning a wage. Here are some key benefits:
1. Earn While You Learn
Unlike traditional education routes, Apprenticeships allow you to gain a qualification while earning a salary, reducing the financial burden of studying.
2. Hands-on Experience
Apprenticeships combine practical work experience with classroom learning, ensuring you develop real-world skills that are directly relevant to your chosen industry.
3. Career Progression
Many Apprentices progress into full-time roles with their employer after completing their Apprenticeship. The skills and qualifications gained can also open doors to higher education and career advancement.
4. No Student Debt
Since Apprenticeship training is funded by the government and employers, you can avoid tuition fees associated with university education.
5. Industry-Recognised Qualifications
Apprenticeships result in nationally recognised qualifications, improving your employability and career prospects in a competitive job market.
Apprenticeships can offer you a fantastic route into a rewarding career, providing financial support, practical training, and valuable experience. Understanding how funding works can help you make informed decisions about your future, ensuring you take full advantage of the opportunities available.
Your guide to Apprenticeships: What every parent & guardian should know!
Support your child’s future with clear, practical advice on apprenticeship pathways, funding, and career progression.
