Apprenticeship Funding

15 funding bands

All apprenticeships have been placed into one of 15 funding bands, with an upper limit of those bands ranging from £1,500 to £27,000.  Employers are expected to negotiate a price for their apprentice's training assessment, in the knowledge that there is a maximum that Government is prepared to commit from its funds for the off the job training and assessment for each apprenticeship.

Small employer co-investment waiver

Employers with fewer than 50 people working for them will be able to train 16 to 18 year old apprentices as well as 19-24 year olds who were formerly in the care or who have an Education and Health Care plan without making a contribution towards the costs of training and assessment up to the funding band maximum.  Instead the government will pay 100% of the training costs for these individuals. 


Employers who do not pay the levy, and those who want to invest more in training than they have available in their digital accounts, will benefit from significant government funding to support thier commitment to apprenticeships.  Employers will make a financial contribution called 'co-investment'.  This is calculated based on the government investing 90% of the cost of the apprenticeship training and the employer investing 10%. 

Apprenticeship Levy

The apprenticeship levy only affect organisations with a paybill in excess of £3 million.  It is calculated based on the total annual UK paybill and the % of employees living in England.  The vast majority of employers will not be eligible to pay the levy and these employers will continue to benefit from generous government support to pay for apprenticeship training.   

Additional payments

For both employers and providers, there will be £1,000 payment for taking on a 16-18 year old as an apprenticeship framework or standard, as well as 19-24 year olds who were formerly in care or who have an Education and Health Care plan.  This will be paid in two equal instalments at 3 months and 12 months.  Employers who benefit from the small employer co-investment waiver will also receive these payments.