Apprenticeship funding

Apprenticeship funding can feel complex, so we have broken it down to show how it works and how your organisation can benefit. Apprenticeships can be used to upskill existing staff as well as to train new recruits, making them a flexible way to build capability across your workforce.

How funding is determined

If you pay the apprenticeship levy

Organisations with a payroll over £3 million a year must pay the apprenticeship levy at 0.5% of the annual pay bill.
You can transfer up to 25% of unused funds to smaller non-levy organisations in your network.
Funds are ring-fenced for apprenticeship training so contributions go directly into upskilling your workforce.
Levy-paying employers can get up to 100% of apprenticeship training costs covered using their levy funds.

If you do not pay the apprenticeship levy

For apprentices aged 16 to 24 at the start of their training, the government funds 100% of training costs.
For apprentices aged 25+ you pay 5% and the government covers 95%.
You must set up an Apprenticeship Service account to reserve funding and manage the process.

Training cost transparency

Each apprenticeship standard has a published funding band on the Skills England website.
Actual cost may vary based on prior learning and experience which can reduce training requirements.
If you are unsure speak to us and we will confirm the cost to your organisation.

Incentives and additional savings

£1,000 incentive payment for apprentices aged 16–18 or 19-24 with an EHCP or previous care experience.
No secondary Class 1 National Insurance contributions for apprentices under 25, saving employers approximately 15% of salary until the apprentice reaches age 25.
£2,000 incentive for non-levy paying SMEs hiring apprentices aged 16-24 (available for apprentice starts from October 2026 and hiring from July 2026).
100% of training and assessment costs covered for apprentices aged 16 to 24 for non levy payers and levy payers who run out of funds
£3,000 incentive for any employer hiring 18-24 year olds on Universal Credit for 6+ months.

Universal obligations and best practice

Every organisation must register for a Government Apprenticeship Service account to manage funding.
Levy and non-levy organisations are responsible for employment costs including wages, benefits and training-related expenses.
Apprentices must be paid at least the National Minimum Wage. We strongly recommend paying above the minimum to support retention and signal value.
Apprentices should be paid for:
- Normal working hours
- Time spent in training that is part of the apprenticeship
- Time studying English and Maths if required
To qualify for funding apprentices must have valid residency status and the right to work in England. They need to have been ordinarily resident in the UK for the last three years (or in the EU/EEA for EU/EEA nationals).
The apprentice’s employment contract and immigration permissions need to cover the full period of the apprenticeship, including assessment.
Full details on pay and conditions are available on GOV.UK

With the apprenticeship scheme you look at the numbers and they stack up. You have the government grant…what you get out of it is fantastic; someone who is loyal to the company and producing some very good work. It has been a very positive experience. I wouldn’t have any hesitation in doing it again.

Michelle Leggatt, Managing Director & Co-owner, Mindworks Marketing

Why work with the JGA Group?

Four-time winner of the West London Business Education and Training Provider of the Year, JGA is a well-established, Ofsted Outstanding provider with over 30 years providing specialist vocational training. We have a full suite of information security, ISO and other accreditations.

Our Queen’s Award was in recognition of promoting opportunity through social mobility. JGA was specifically recognised for “creating supportive environments for diverse learners to progress and succeed”.

Learn more

Employer guide

Your guide to hiring, funding and supporting apprentices – with practical steps, key responsibilities and real-world impact.”

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Stephanie Umebuani

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