How Does Apprenticeship Funding Work For My Business?

A post by Skills for Security.

Understanding apprenticeship funding is one of the first questions employers have when considering taking on an apprentice. The good news is that government funding covers most of the training costs, making apprenticeships more accessible than many businesses expect.

Here’s a simple breakdown of how apprenticeship funding works and what it means for your business.

What Is The Growth and Skills Levy?

The Apprenticeship Levy is now being developed into the Growth and Skills Levy – a government scheme designed to fund apprenticeship training and wider skills development across England.

If your business has an annual pay bill of over £3 million, you’ll pay 0.5% into the levy. These funds are then placed into your digital apprenticeship account, which you can use to pay for apprenticeship training and assessment.

As of April, unused levy funds expire after 12 months (previously 24 months). As a result, many larger employers choose to invest them into developing new or existing staff through apprenticeships.

Whilst the name has changed, the core structure remains largely the same for employers, so the way you access and use funding will feel very familiar.

The main difference is that the Growth and Skills Levy is expected to give employers more flexibility in how funds can be used in the future, including access to a broader range of training options.

What If My Business Doesn’t Pay The Levy?

If your annual pay bill is under £3 million, you won’t pay the Growth and Skills Levy.

Instead, and depending on the age of your apprentice(s), you may be required to contribute just 5% towards the cost of training, with the government covering the remaining 95%.

This makes apprenticeships a cost-effective way to bring new talent into your business or upskill existing employees without a large upfront investment.

What Costs Are Covered?

Government funding covers:

• The training delivered by your chosen training provider
• End-point assessment
• Ongoing support

As the employer, you are responsible for paying your apprentice’s wages and providing a productive job role where new knowledge and skills can be applied.

Our team will clearly explain any financial contribution required before you commit, so you have full transparency from the start.

How We Support You

Understanding apprenticeship funding can feel complicated, but we make it straightforward. At Skills for Security, we guide you through the process from start to finish.

We explain exactly what funding you’re eligible for, including Levy and non-Levy options, so you have a clear picture of costs before taking the next step. We’ll help you complete any paperwork and ensure everything is set up correctly for your apprentice.

Throughout the process, our team is on hand to answer questions, provide advice, and make sure your funding setup is smooth and compliant. This way, you can focus on welcoming your apprentice and getting them settled into their new role.

Take The Next Step

Apprenticeship funding is designed to make developing skilled professionals more accessible for businesses of all sizes.

If you’re considering hiring an apprentice and want to understand exactly what funding would look like for your organisation, get in touch with our team today and we’ll talk you through it.