Paying for Apprenticeships

Funding and Incentives

Apprenticeship funding for

Levy Paying Employers

Levy Paying Employers

Apprenticeship funding for

SME Employers

SME Employers

Apprenticeship funding explained

Who pays the Apprenticeship Levy?

If you are a large employer with an annual wage bill of over £3 million, you will be paying the Apprenticeship Levy. The Apprenticeship Levy is calculated as 0.5% of your annual wage bill.

You can access your levy fund to pay for apprenticeships training through a Digital Apprenticeship Service account.

We have helped hundreds of employers to understand and use the Levy, making sure they get the most from their money and delivering on their training goals.

Read our Levy Payers page and try our Apprenticeship Levy Calculator to get an estimate of how much money you might have available.

Find out more

What if I don’t pay the Apprenticeship Levy?

If you are a small to medium sized employer with an annual wage bill of less than £3 million then the Government will pay 95% of the cost of Apprenticeship training and you will pay just 5% (called ‘co-investment’).

This makes Apprenticeships an affordable and great value way to upskill your workforce and grow and expand with new talent.

SMEs also manage payments for apprenticeships training through a Digital Apprenticeship Service account.

Read more about Apprenticeship funding and support for SMEs.

Find out more

Using the Digital Apprenticeship Service

Our added-value service includes co-managing your Digital Apprenticeship Service accounts to help you get the most form you’re money and make it easy to arrange.

We have been instrumental in designing and delivering Apprenticeships since they began and we have effectively supported hundreds of employers – including many household names – to understand what they can achieve with Apprenticeships and make their funding go further.

Get in touch and our friendly team will be happy to advise you on how to get started.

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Skills Training UK has dovetailed with our business objectives and created bespoke training that was exactly what we asked for.

Nick Venn, Training Manager,
The Bristol Port Company

Incentive payments for hiring a new apprentice

Following the Coronavirus pandemic, the Government introduced a package of incentive payments to help employers continue hiring new apprentices and offering work experience for Trainees.

Current incentives available to all employers include:

  • £3,000 for each new Apprentice aged 16-24 who starts their Apprenticeship between 1 April 2021 and 31 September 2021.
  • An additional £1,000 incentive for recruiting a 16–18-year-old apprentice or a 19–24-year-old apprentice with additional learning needs or an Education, Health and Care (EHC) plan.

You can apply for payments from after you add the new Apprentice to your Digital Apprenticeship service account. Incentives are paid in two equal instalments at 90 days and 365 days.

See our information on incentives for skills recovery here

Skills Training UK have fully understood our requirements and tailored their approach around our values and behaviours, which are embedded in everything we do.

Alison Bimble, Kent Graduate Programme, Kent County Council

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