Any employer in England is eligible to access funding to develop and retain staff or recruit new talent.
Employers with an annual pay bill of over £3m contribute to the apprenticeship levy. Employers with an annual pay bill of £3m or less do not pay the levy – the government will pay 90% towards the cost of an apprenticeship with 10% invested by the employer.
Degree apprenticeships are eligible for government funding thanks to the government’s apprenticeship levy, which came in to play in 2017 and supports post-16 apprenticeships. The apprenticeship levy applies if you have an annual wage bill over £3m. The levy is then charged at 0.5% of your total wage bill, minus a standard levy allowance of £15,000.
The money you pay in sits in your HMRC digital account until it is used on apprenticeship training, if it is not used it expires after 24 months.
Did you know...? Employers who are levy payers and committed to apprenticeship training are likely to get out more than they pay into the levy with a 10% government top-up to pay for apprenticeship course fees and assessments.
Read more about the apprenticeship levy
If you’re a non-levy payer (with a salary bill under £3m), you pay only 10% of the cost of the apprenticeship training, with the remaining 90% paid by the government. An added bonus is that there’s no National Insurance to pay if your apprentice is under 25.
If your organisation employs less than 50 people, you are eligible to receive 100% funding for apprentices who are under the age of 19 when they start their study.
As an apprentice there is no cost to you directly, your apprenticeship is paid by your employer and the government. You don’t have to pay for the course so there are no student loan or tuition fees.
Use the official levy calculator to estimate your available spend on apprenticeships and how much the government will contribute towards the training costs. To use this tool you need to know your organisation’s annual UK payroll. Use the calculator