Apprenticeship funding (employer)
You can get apprenticeship funding to help pay for apprenticeship training.
This information is for apprenticeship funding in England. There are different arrangements for apprentices in Scotland, Wales and Northern Ireland.
The apprenticeship levy
From 6 April 2017, employers with an annual pay bill over £3 million must report and pay the apprenticeship levy through the PAYE process.
If you do not have enough funds to make a monthly training payment, you can share the remaining cost with the government. This is called ‘co-investment’.
You’ll need to pay 5% (10% for apprenticeships that started before 1 April 2019) of the balance for that month and the government will pay 95% up to the funding band maximum.
Get an apprenticeship service account
Levy-paying employers need an apprenticeship service account to:
- receive their levy funds
- manage their apprentices
- pay a training provider
- stop or pause payments to a training provider
If you do not pay the levy, you can only create an account to receive a transfer from a levy-paying employer.
Use your apprenticeship funds
To get funding for an apprenticeship, the apprentice must work in England for at least 50% of their time.
Use your apprenticeship funds (up to the funding band maximum) to pay for an apprentice’s training and assessment.
You cannot use these funds to pay for:
- statutory licences to practise
- travel and subsidiary costs
- work placement programmes
- setting up an apprenticeship programme
If the training and assessment cost more than the funding band maximum, your organisation must pay the difference.
View the apprenticeship funding rules to see everything you can use your apprenticeship funds for.
Employees living in England
The amount of apprenticeship funds in your account depends on your ‘English percentage’. HM Revenue and Customs (HMRC) use the following information to work it out:
- how many of your employees live in England
- how much of your pay bill is paid to them
You can view your English percentage in your apprenticeship service account.
How it works
1. Select an apprenticeship type
‘Standards’ cover a specific occupation and set out the core skills, knowledge and behaviours an apprentice needs. You’ll also need an end point assessment organisation.
‘Frameworks’ include work-related vocational and professional qualifications, with workplace and classroom training.
We’re withdrawing frameworks. Apprentices cannot start a framework after 31 July 2020.
2. Choose a training provider
Choose an approved training provider to deliver your apprenticeship training.
3. Agree the cost
You must agree the total cost for an apprenticeship with your training provider, which includes training and assessment costs. For apprenticeship standards, you must also agree the end-point assessment cost with an end-point assessment organisation.
4. Use your apprenticeship service funds
Your apprenticeship funds will enter your account each month after you declare the levy to HMRC. Funds will leave your account when you pay your training provider.