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.

Photo of a piggy bank

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.
  • The government adds 10% to your levy account which increases your training budget.
  • 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 21 at the start of their training, the government funds 100% of training costs.
  • For apprentices aged 22+ 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 for apprentices aged 16–18 or 25 and under with an EHCP or previous care experience.
  • No secondary Class 1 National Insurance contributions for apprentices under 25 saving up to 13.8% on earnings above the threshold.
book with a medal illustration

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
  • Full details on pay and conditions are available on GOV.UK.
michelle leggatt from mindworks photo

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?

Ofsted Outstanding logoFour-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.”

Go to employer guide >

smiling man posing with his arms crossed

Our apprenticeships

Explore high-impact apprenticeships that build expertise, transform skills, and prepare learners for emerging roles across industries.

Go to apprenticeship listings >

Georgia-Casestudy-New

Our case studies

Discover stories of impact and progress, where apprentices grow in confidence and employers gain real results across sectors.

Go to case studies >

Stephanie Umebuani headshot

Stephanie Umebuani

Get in touch

Looking for more information or simply want to understand how apprenticeships work? Please complete the form or book a short call with Steph on Calendly.

Read our Privacy & Cookie Policy to see how we will process the data you provide.