Apprenticeship funding for SMEs and Levy-payers explained
How Apprenticeship funding works for employers
Whether you pay the Apprenticeship Levy or not, government funding can support your training costs. We’ll help you understand your options and access the funding you’re entitled to.
Funding for employers
Apprenticeship funding, simplified
Apprenticeships are funded through a government-backed model designed to make workforce development accessible and affordable for employers.
There are two main routes:
- Levy-paying employers (annual payroll over £3 million)
- Non-Levy employers (annual payroll under £3 million)
The funding available depends on your organisation’s size and structure, but in most cases, the majority of training costs are covered.
Our experienced Apprenticeship funding specialists manage the process with you from start to finish, ensuring your funding is secured correctly and efficiently.
Levy-paying employers
If your organisation has an annual payroll of over £3 million, you contribute to the Apprenticeship Levy through PAYE.
- Levy funds can be used to cover 100% of Apprenticeship training costs
- The government applies a 10% top-up to your account
- Funds expire after 24 months if unused
We help you:
- Check available Levy balance
- Allocate funds correctly
- Add us as your provider
- Manage approvals and enrolment
- Transfer your Levy
Non-Levy employers
If your annual payroll is under £3 million, you are classed as a Non-Levy employer.
In most cases:
- The government covers 95% of Apprenticeship training costs
- Your organisation contributes just 5%
Additional support may be available for younger apprentices or eligible employees.
We support you with:
- Apprenticeship Service setup
- Funding reservation
- Eligibility checks
- Ongoing compliance requirements
Funding doesn’t need to feel complex
From initial eligibility checks through to enrolment and approvals, our team ensures the entire process is managed efficiently, giving you clarity, confidence, and control over your training investment.
Funding FAQs
Have more questions?
Looking for quick answers? Explore our FAQs for guidance and support on key topics.
Can I use Levy funds for existing employees?
Yes, training can be funded for both new hires and existing staff, as long as it meets Apprenticeship requirements.
How does the 10% government top-up work?
For every £1 you deposit into your Levy account, the government adds 10p to fund Apprenticeship training.
Can we transfer all our unused Levy funds?
Yes, you can transfer up to 25% of your previous year’s Levy contribution. Transfers must fund new Apprenticeship starts with other employers.
Can existing staff be funded?
Yes. Apprenticeship funding applies to both new and current employees.
Do we need to pay upfront?
Only your 5% co-investment (unless fully funded due to age or incentives). Our team will help you understand payment options.
Get in touch
Speak to our funding advisors
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