Co-investment

EmployerThis article sits within the Employer section

There is a similar article for training providers.

Co-investment is when employers share the cost of training and assessing apprentices with the government. 

Your organisation may need to pay some of the cost, but the government will pay the rest up to the funding band maximum. If the apprenticeship started: 

  • on or after 1 April 2019, your organisation must pay 5% of the total cost
  • before 1 April 2019, your organisation must pay 10% of the total cost

Employers that do not pay the levy

If your organisation does not pay the levy, then it always co-invests with the government with the appropriate percentage that you pay as advised above.

If you employ fewer than 50 employees, you may not need to pay co-investment and the apprenticeship can be funded by the government. Please discuss this with your training provider when considering an apprenticeship.

If your circumstances change and you start to pay the levy after an apprenticeship has started, the apprenticeship will only be paid through co-investment if you do not have enough apprenticeship funds to pay for training and assessment.

If you begin to pay the apprenticeship levy, then current and future apprenticeships will use your levy balance and you will not need to pay co-investment, unless you do not have sufficient levy within your account for all your monthly costs.

It is important to monitor your levy balance and monthly payments to ensure you pay the correct co-investment. This can be checked within the Finance section of your Apprenticeship Service account.

If your account does not update to start showing the levy balance within your account, you may need to remove your PAYE scheme and re-add this ensuring you use your Government Gateway credentials for your organisation.

Please note that levy is transferred from HMRC to the Apprenticeship Service around the 23rd of each month.

Levy-paying employers

Your account will automatically go into co-investment if you do not have enough apprenticeship funds to pay for training and assessment. It is important to monitor your levy balance and monthly payments to ensure you pay the correct co-investment.

You cannot carry apprenticeship costs into the next month.

Extra funding

Your organisation could also get extra funding. Details of this can be found under Additional payments for employers, providers and apprentices in the Apprenticeship funding rules

Last updated on

Is this page useful? Thank you for your feedback. You can