The government is bringing out new funding and schemes every month, so make sure to return to this page for any updates, or sign up to our newsletter.

Please note, the current guidance on this page is only appropriate for England.

  • New Grants

    Recently, the government announced they will now be offering additional payments to every employer who hires a new apprentice between 1st August 2020 and 31st January 2021.

    The payments include £2,000 to any employer in England for every new apprentice that they hire under the age of 25, and £1,500 for every new apprentice aged 25 or over. These are in addition to the existing scheme which provides £1,000 for every 16-18 year old, or 19-24 year old with an Education, Health and Care plan, hired as a new apprentice by an employer.

    There is no cap on the number of payments you can receive for hiring new apprentices.

  • Training

    Government funding for covering the costs of training apprentices are different for different size companies.

    If your annual pay bill is over £3 million you must pay the Apprenticeship Levy, and you will use that to fund the training costs of your apprenticeships. If you are one of these employers, go to our guide on the Apprenticeship Levy to find out about the provided funding and how the Levy works.

    If you are not a levy payer, there are two different ways to fund your apprenticeship training. This is either by registering to and utilising the apprenticeship service, or through a funding contract held by your selected training provider.

    After agreeing an amount between yourself and the training provider, the government will cover 95% of the training costs, up to the allocated maximum funding for that apprenticeship. If the agreed sum with your training provider exceeds the funding band maximum, you will have to cover all of the training costs above that limit.

    Any costs you have to pay for training will be taken in installments over the course of the apprenticeship by your training provider, so there is no big charge and all the hassle is done for you.

  • National Insurance Savings

    For apprentices under the age of 25, all employers are exempt from paying employer class 1 National Insurance contributions on earnings below £827 per week, or £43,000 per year.

    For example, if you had a 22 year old apprentice being paid the National Minimum Wage, you would save £1,500 in National Insurance contributions over 12 months. If you were paying that same apprentice the Real Living Wage, that saving would increase to £2,000 over the same period.

  • Traineeships

    The government has recently announced that it is now funding £1,000 for every trainee taken on by any employer in England.

  • Eligibility for Apprenticeship Funding

    In order to receive funding, your apprenticeship must follow appropriate the outlined Apprenticeship Standards. To search for your Apprenticeship Standard, click here.

    Each Standard has guidelines specific to it, but some of the general guidelines include:

    1. Provide a lawful wage
    2. Ensure your apprentice has the required Level 2 English, maths and ICT skills, if needed
    3. Ensure that at least 20% of the apprentices work hours are made up of off-the-job training
    4. Only take on an individual as an apprentice if they require enough training to take 12 months of at least 30 hours a week to be capable for the job role
    5. Do not charge the apprentice for any of the hiring, training or assessment costs