Getting funding for apprenticeship training

An apprenticeship is a job. You employ them in the same way as you would other employees. They have a contract of employment, you pay them a salary, contribute to NI, and they are entitled to holiday and sick pay. There is a minimum wage for apprentices, but to attract the right candidate the salary should reflect the role and the level within your organisation.

The training element of an apprenticeship can be funded in a variety of ways depending on the size of your organisation or how much your pay bill is.

You should know that there is a funding band maximum set by government for each apprenticeship standard. This is the maximum amount that an apprenticeship levy paying employer (levy payer) or government can contribute to apprenticeship training costs.

The different scenarios are set out below:

You don’t pay the apprenticeship levy

You may need to pay 5% towards the cost of training and assessing an apprentice. The government will pay the rest up to the funding band maximum. You will pay the training provider directly and agree on a payment schedule.

You may be able to access funding through something called a levy transfer from a levy payer who chooses to spend some of their levy to support other businesses, perhaps in their supply chain or their local area. If you receive transferred funds, you do not need to pay any contribution to training costs (normally up to 5%).

Information on how to receive levy transfer funding through the government’s Apprenticeship Service is available here.

There are a couple of schemes in East Sussex that you can apply directly to. They have their own processes and procedures, and you can find out more below:

You pay the apprenticeship levy

The apprenticeship levy is paid by employers with a pay bill of over £3 million (they pay 0.5% of their total annual pay bill). Currently, only 2% of employers pay the apprenticeship levy. You can use your levy pot to contribute to the training and assessment costs of an apprenticeship standard up to the funding band maximum.

Help to pay for other costs

You can get £1,000 to support your apprentice in the workplace if they are one of the following:

  • 16 to 18 years old
  • 19 to 25 years old with an education, health and care plan
  • 19 to 25 years old and they used to be in care.

If your apprentice is eligible, your training provider will give you the payment in two instalments of £500. You will get the first payment after 90 days and the second one after a year.

You can use the money to pay towards things like uniform and salary.

Check out the government website for more information on funding an apprentice.

    Other possible sources of funding
    • The Construction Industry Training Board offers grants for apprenticeships for its members. It also has a team that can give you advice, support you to apply for your grant and help you set up your apprenticeship service account. More information is available here.
    • Skills for Care distributes the Workforce Development Fund on behalf of the Department of Health and Social Care. It is available to support the continuing professional development of staff across the adult social care sector by providing a contribution towards the costs of vocational learning. More information is available here.

    We hope you enjoy working with your apprentice!