Apprenticeship Funding

How Apprenticeships Are Funded

As an employer, you can either access funding via the Apprenticeship Levy or by accessing 95% of the cost through government funding. You can make additional savings by not having to pay employer National Insurance for apprentices under the age of 25.

Non-levy payers – if your annual wage bill is less than £3m:
Apprenticeships are 95% government-funded so you pay 5% contribution which is invoiced when an apprentice starts with you.

  • The cost of the apprenticeship will be agreed with you at the start and will be documented on the commitment statement.
  • From 1st April 2021 you will need to register on the Digital Apprenticeship Service prior to employing an apprentice to access the government funding. NBC can assist you with the registration process.

Non-levy funding by age of the apprentice:

  • 16-18 years old and employer (all sites) has less than 50 employees – fully government funded
  • 19+ and employer has less than 50 employees – 5% contribution
  • 16-18 years old and employer has more than 50 employees – 5% contribution
  • 19+ and the employer has more than 50 employees – 5% contribution

Levy paying employers – if your annual payroll is over £3m:
This applies to companies who have an annual payroll of over £3 million. Companies pay 0.5% of their pay bill directly into a fund, the government then adds an extra 10%.
You will pay into your levy fund through PAYE every month and the funds expire after 24 months if you don’t use them.
Your levy allocation will be managed through a digital account which will allow you to:

  • receive levy funds to spend on apprenticeships
  • manage your apprentices
  • pay your training provider
  • stop or pause payments to your training provider

How can we help you?

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    National Minimum Wage for Apprentices

    Here is the current national minimum wages (2021) and the new national minimum wages from April 1st 2022. The apprenticeship rate will be brought in line with minimum wage for under 20 year old. You may need to increase the wages of your apprentice to meet these levels from 1st April 2022. Please note the figures are minimum levels and we recommend a starting rate of at least £5 an hour with incremental rises based on performance and development.

    Apprentices are entitled to the apprentice rate if they’re either:
    • aged under 19
    • aged 19 or over and in the first year of their apprenticeship


    Apprentice or Under 18

    Aged 18-20

    Aged 21-22

    Aged 23-25

    Aged 25+