Eligible apprenticeship starts
Non-levy employers receive full government funding up to the funding-band maximum for eligible apprentices aged 16 to 24.
See how this worksFunding and compliance
Understand what your apprenticeship could cost
Funding depends on your organisation, the apprentice’s age, the programme and whether you pay the Growth and Skills Levy. We’ll help you establish what funding is available and what, if anything, your organisation will need to contribute.
Funding at a glance
The key funding points for employers
Annual pay bill threshold
Employers with an annual pay bill above £3 million contribute to the Growth and Skills Levy.
Understand the levyGrowth and Skills Levy rate
The levy is charged at 0.5% of an employer’s annual pay bill, subject to the current rules.
Levy explainedNew levy-fund expiry
New levy funds entering accounts from 1 August 2026 expire after 12 months.
Levy changesFunding routes
Choose the funding route that fits your organisation
Your levy position and the apprentice’s age at the start of training affect how apprenticeship funding is applied. We will confirm the funding position before you enrol.
Use your Growth and Skills Levy
If your organisation’s annual UK pay bill is over £3 million, you pay the 0.5% levy and can use your Apprenticeship Service account to fund eligible training.
- Access your levy funds
- No co-investment for 16–24-year-olds
- 25% co-investment for 25+ when levy funds are exhausted
Government support towards training
Employers that do not pay the levy can access apprenticeship funding through the Apprenticeship Service.
- 16–24-year-olds: fully funded
- 25+ year-olds: government support plus employer contribution
- We confirm the exact funding position before you enrol
Eligible starts fully funded
From 1 August 2026, eligible apprenticeship starts for 16–24-year-olds are fully funded for both levy and non-levy employers.
- No employer co-investment
- Covers training and assessment
- We confirm eligibility and the funding band for your programme
Build your workforce
Develop your existing team or recruit new talent
Apprenticeships can help you build capability from within or bring new people into your organisation with structured, supported development.
Upskill your existing team
Apprenticeships build capability, boost productivity and improve retention by developing the skills your current employees need.
Develop your people
Recruit and grow young talent
Attract motivated new starters and invest in their future while gaining the skills your business needs for growth.
Find out moreFunding scope
Understand what apprenticeship funding can cover
Funding is for eligible apprenticeship training and assessment, rather than day-to-day employment costs. The exact position depends on the apprenticeship, agreed price and rules that apply to the apprentice’s start date.
Eligible training and assessment costs
- Eligible apprenticeship training
- Eligible end-point assessment
- Delivery against the apprenticeship standard
- Eligible English and maths support where applicable
- Eligible learning support costs
Employment and non-eligible costs
- Apprentice wages and other employment costs
- Costs outside the eligible funding rules
- Equipment or materials not required for training
- Travel, accommodation and general expenses
- VAT where your organisation can reclaim it
Management apprenticeships
Plan your leadership and management development
From September 2026, new starts on Team Leader Level 3, Operations Manager Level 5 and Chartered Manager Degree Level 6 will no longer receive government funding. Existing learners will continue to be funded to completion.
Explore leadership and management trainingGrowth and Skills Levy: what changed on 1 August 2026?
Key changes to levy funding
| Aspect | Before August 2026 | From August 2026 |
|---|---|---|
| Government top-up to levy account | 10% | 0% (top-up stopped) |
| Expiry of new levy funds | 24 months | 12 months |
| Co-investment when levy funds are exhausted | 5% | 25% for 25+ year-olds; 0% for 16–24-year-olds |
| Apprentice aged 16–24 | May require co-investment in some cases | Fully funded (0% employer contribution) |
Benefits and subsidies
Employer support can reduce the cost of taking on or developing apprentices
Apprenticeships can be highly cost-effective for employers because eligible training and assessment costs may be funded through levy funds, government co-investment, levy transfers or other support. Some younger apprentices and eligible apprentices with additional circumstances can also attract additional payments.
Existing support
16 to 18-year-old apprentices
Where the apprentice is aged 16 to 18 at the start of training, the employer and provider may each receive an additional payment, subject to the funding rules and evidence requirements.
Existing support
Eligible 19 to 24-year-old apprentices
Additional employer and provider payments may apply where the apprentice has an Education, Health and Care plan or has been in the care of their local authority, subject to the detailed rules.
From 1 August 2026
Full funding for non-levy employers
A non-levy employer receives 100% government funding up to the funding-band maximum for an apprentice aged 16 to 24 at the start of training. A 5% contribution applies for starts aged 25 and over.
From 1 October 2026
£2,000 hiring payment
A non-levy employer recruiting a new apprentice aged 16 to 24 may receive £2,000 in two instalments where the apprentice starts on or after 1 October 2026 and meets the employment-duration rules.
Important:
Benefits, subsidies and incentives are date-sensitive. Before quoting a funding position, confirm the apprentice’s
start date, age at start, employer levy status, eligibility evidence and whether any levy transfer or hiring payment applies.
During the apprenticeship
Off-the-job training and reviews need employer support
Apprenticeships are jobs with training. Employers should plan how the apprentice will be released for training, supported by their manager, and given workplace opportunities to use what they learn.
Off-the-job training
Training must develop new knowledge, skills and behaviours linked to the apprenticeship. It should not be treated as normal productive work or optional extra activity.
Minimum hours by standard
Employers and providers should refer to the published off-the-job training minimum requirement for the relevant standard and ensure the training plan reflects the agreed delivery model.
Progress reviews
Progress reviews should involve the apprentice, provider and employer so that learning, workplace application, support and any risks can be reviewed regularly.
English and maths
Where English or maths is required or agreed, this should be reflected in the training plan and supported alongside the apprenticeship programme.
Learning support
Where reasonable adjustments are needed, the provider may identify learning support requirements. Employer awareness depends on the apprentice’s consent and the circumstances.
Gateway and assessment arrangements
The employer should support the apprentice to reach occupational competence and prepare for the assessment arrangements that apply to the chosen standard. These are changing standard by standard during 2026 and 2027.
Change of circumstance
What if something changes during the apprenticeship?
Changes should be handled promptly and documented properly. The employer should tell the provider as early as possible if the apprentice’s circumstances, role, hours, employment or ability to continue training changes.
Break in learning
The reason and expected length of the break should be recorded. When the apprentice returns, the training plan and apprenticeship agreement usually need to be reviewed and revised.
Change in working hours
A change in hours can affect the practical delivery plan, off-the-job training pattern and realistic completion date.
Change in job role
The new role must still support the selected apprenticeship standard and give the apprentice enough opportunity to develop and evidence occupational competence.
Change of employer
The funding record, employment evidence, apprenticeship agreement and training plan may all need updating.
Redundancy
Redundancy has specific rules. Some apprentices may continue in training for a limited period or to completion depending on their stage in the apprenticeship and the rules in force.
Maternity, adoption or shared parental leave
Employers should discuss the impact with the provider. Any agreed training during keep-in-touch-style days needs to be handled carefully and documented.
Planning checklist
What to check before you commit
| Question | Why it matters | What to prepare |
|---|---|---|
| Are you a levy-paying employer? | Determines whether apprenticeship service account funds may be available. | Payroll/levy status and apprenticeship service access. |
| Is the apprentice employed by the correct organisation? | Funding is linked to employment, PAYE and connected-company rules. | Employer name, PAYE details and employment evidence. |
| Is the apprentice new or existing staff? | Affects role design, prior learning and the development plan. | Job description, current responsibilities and intended progression. |
| Does the apprentice have relevant prior learning? | Funding should not pay for training the apprentice does not need. | CV, qualifications, work history and skills evidence. |
| Can the role support the apprenticeship standard? | The apprentice needs suitable work duties to develop and evidence competence. | Role profile, line manager support and workplace opportunities. |
| Can you release the apprentice for training? | Off-the-job training must be planned, delivered and evidenced. | Work pattern, training schedule and line manager agreement. |
| What is the funding band and employer contribution? | Shows the likely cost and whether any co-investment or excess cost is required. | Chosen standard, negotiated price and apprentice details. |
| Are the agreement and training plan complete? | Incomplete documentation can put funding at risk. | Signed apprenticeship agreement, signed training plan and evidence pack information. |
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Explore routeFree programme guide
Request the apprenticeship brochure
Take away the programme information and review it with the people involved in the decision.
Personal guidance
Talk through the role before you commit to a route
Use a short conversation to confirm whether the responsibilities are substantial enough, which apprenticeship level fits and how funding and workplace support are likely to work.
Funding FAQs
Common questions about apprenticeship funding and compliance
Funding basics
Who can use apprenticeship funding?
Funding is for eligible employed learners and employers, subject to the current apprenticeship funding rules. Eligibility depends on the learner, the job role and the proposed programme.
Can apprenticeship funding be used for existing employees?
It can be used for existing employees where the programme provides meaningful new learning and is relevant to the employee's role and development needs, subject to the current rules.
Does the apprenticeship levy pay for all training?
Levy funding and employer contributions depend on the employer's circumstances, the programme and the funding rules in force. Confirm the current position before making a commitment.
Checking eligibility
What should we check before enrolling a learner?
Check that the role is suitable, the learner is eligible, the programme represents new learning and the employer can provide the required workplace support and off-the-job learning time.
Can Professional Academy help us understand the funding position?
Yes. Professional Academy can help employers and learners work through the practical questions around route fit, funding, eligibility and the next steps. Final eligibility is always subject to the current rules.
Explore your options
Connect funding questions to the right programme
Funding is only one part of choosing a route. Compare marketing apprenticeships if you need marketing capability, or explore the Sales Executive apprenticeship for a sales role. The apprenticeship business case calculator can help you frame costs and assumptions for a discussion about your organisation.
Next step
Want to understand what funding could mean for your organisation?
Talk to Professional Academy about your roles, skills gaps and apprenticeship options. We will help you identify the most appropriate route before you invest time in the wrong pathway.
