💷 How Apprenticeship Funding Works

Apprenticeships are heavily funded by the government. In many cases, employers pay little or nothing towards the training.

📌 What you’ll learn

How funding works today, what may change from August 2026, and what this means for your organisation.

🧠 The simple version

The government covers most of the cost of apprenticeship training.

What you pay depends on whether you pay the levy and how your funding is used.

🏢 If you pay the levy

• You already have funds available to spend
• Training is usually fully funded from your levy
• From August 2026, funds expire after 12 months

🤝 If you don’t pay the levy

• You usually pay a small contribution
• Currently this is around 5%
• Some employers (especially hiring under 25s) may be fully funded

🔄 Levy transfer

Another organisation may transfer unused levy funds to you.

This can mean your apprenticeship is fully funded.

⚠️ Changes from August 2026

• Co-investment increases to 25% if levy funds run out
• Levy funds expire after 12 months
• The 10% government top-up will be removed
• More flexibility through the Growth and Skills Levy

These changes apply to new apprentices starting from August 2026.

📦 What does the funding cover?

• Training delivery
• Development Coach support
• Progress reviews
• End-Point Assessment (EPA)

It does not cover salary.

💡 Top tip: Funding rules are changing. Planning early helps you maximise funding and avoid unexpected costs.