What are Our Apprenticeships to Our Employers?
A Cost-Effective Way To Develop Your Workforce
Apprenticeship funding can seem complex, but the principle is simple: employers can access significant financial support to develop people with the skills their business needs.
How your organisation funds apprenticeship training will depend on a number of factors, including whether you pay the Growth and Skills Levy (previously known as the Apprenticeship Levy), the age of the apprentice, and the funding available for the apprenticeship standard. The Growth and Skills Levy provides employers with greater flexibility to invest in workforce development while continuing to support apprenticeship training.
Funding rules for new apprenticeship starts changed on 1 August 2026, making it important for employers to work from the latest guidance and understand the support available to them.
NOT SURE WHICH FUNDING RULES APPLY TO YOU BUSINESS?
Engineering Trust Training can review your circumstances, the apprentice you are considering and the programme required to help you understand the likely costs.
Levy Or Non-Levy?
The first thing to establish is whether you pay the Growth and Skills Levy or not.
ANNUAL PAY BILL ABOVE £3 MILLION
LEVY-PAYING EMPLOYERS
Levy funds are held within the employer’s Apprenticeship Service account and can be used towards eligible apprenticeship training and assessment costs.
From August 2026, the previous automatic 10% government top-up has been removed, and new funds entering an employer’s account generally expire after 12 months if unused.
If Levy Funds Run Out:
Age 16-24: 100% of funding can be provided buy the government for eligible training and assessment costs up to the funding band maximum.
Age 25+: 75% Government contribution, with the employer responsible for the remaining 25%.
ANNUAL PAY BILL UNDER £3 MILLION
NON-LEVY
EMPLOYERS
Employers that do not pay the Growth and Skills Levy can still access substantial government funding towards eligible apprenticeship training and end-point assessment.
Whether an employer is required to make a co-investment towards training costs depends on the apprentice’s age on the first day of their apprenticeship,
Funding:
Age 16-24: Government funding can cover the full eligible training and assessment cost.
Age 25+: 95% Government generally contributes 95%, with the employer responsible for the remaining 5%
How We Would Support You as an Employer...
Apprenticeship Incentive Payments
Additional payments are available in certain circumstances and can help employers offset some of the wider costs of taking on an apprentice.
£1,000
£2,000
Additional Employer Payment
Non-Levy Hiring Payment
Supporting Eligible Younger Apprentices
New Apprentices
Aged 16-24
Employers can receive an additional £1,000 when they take on an eligible apprentice who is aged 16 to 18, or aged 19 to 24 and has an Education, Health and Care Plan or has been in the care of their local authority.
From October 2026, eligible non-levy employers can receive a hiring payment of up to £2,000 when recruiting a qualifying new apprentice aged 16–24.
A Simple Example...
What Could 5% Co-Investment Look Like?
If an eligible apprenticeship has an agreed training and assessment price of £20,000 and the employer contributes 5%, the numbers would look like this:
Total Training Cost: £20,000
Employer Contribution: £1,000
Government Contribution: £19,000
What Isn't Covered
Levy or government funding supports eligible training and assessment. Employers still need to consider the wider costs associated with employing and developing an apprentice. Such costs may include:
- Wages | The apprentice's salary and normal expected employment costs
- Employement Costs | Employer National Insurance and pension contributions where applicable
- Equipment & PPE | Tools, equipment and Personal Protective Equipmentrequired for the role
- Travel & Expenses | Any relevant travel or other employment-related costs.
- Mentoring | Time spent by experienced employees supporting development
- Training Time | Internal time and resource required to develop workplace skill
More on Apprentice Wages...
Wages Are One of the Main Employer Costs
Apprentice Minimum Wage: £8.00 per hour
(from 1st April 2026)
+
The Statutory Minimum Does Not Have to be the Salary Provided
(A More Competitive Salary Can Attract Stronger Candidates)
An apprentice is an employee and must be paid at least the applicable National Minimum Wage. The apprentice rate applies to apprentices who are under 19, and apprentices aged 19 or over who are still in the first year of their apprenticeship. Apprentices aged 19 or over who have completed their first year must receive at least the minimum wage rate applicable to their age.
More on Mentoring & Training...
Training, Mentoring and Managing Your Apprentice
The financial cost is only one part of a successful apprenticeship. Employers also need to invest time and expertise.
1. Demonstrating Tasks | Experienced employees show apprentices how work is carried out.
2. Supervision | Practical work may initially need greater oversight and support
3. Mentoring | Apprentices benefit from guidance from experienced colleagues
4. Progression | Responsibility can increase as the apprentice becomes more capable
There is Required Learning Alongside On-Site Training & Mentoring
Off-The-Job Training
Apprentices must receive dedicated off-the-job training as part of their apprenticeship. This takes place during the apprentice's paid working hours and develops the knowledge, skills and behaviours required for their occupation. It does not simply mean sending the apprentice to college. Depending on the programme, it may include structured teaching, practical training, mentoring, shadowing, new equipment, processes or other relevant development activity.
Minimum Requirement
20%
of normal working hours, capped at an average of six hours per week under current guidance.
Planning Your Investment...
Crunching The Numbers
There isn't one single figure that represents the cost of employing an apprentice. The actual cost depends on several factors:
1. Who You Recruit
Age, salary and existing experience can affect both employment and training costs.
2. Whether You Pay the Levy
This determines how apprenticeship training is funded.
3. The Apprentice's Age
Type your Age can significantly affect the level of government contribution towards training.
4. The Apprenticeship Standard
Each standard has a funding band which limits the amount of eligible funding available.
5. Your Internal Commitment
Consider supervision, mentoring and workplace development time.
6. Available Incentives
Additional employer payments may help offset some costs.
Need Help With the Numbers?
Find Out What an Apprentice Could Cost Your Business
Engineering Trust Training can help you understand the funding available, identify the appropriate apprenticeship and work through the likely costs for your organisation.
Information updated August 2026. Apprenticeship funding rules can change and different rules may apply depending on the apprentice's start date and individual circumstances.