Apprenticeship Funding for Small and Medium Businesses

If you don’t pay The Apprenticeships Levy then this page will explain everything you need to know about funding apprenticeships within your business.

This guide will cover how to access apprenticeship funding, what contributions you’ll need to make, what grants are available and will also cover some common FAQs we’re often asked about funding an apprentice.

Apprenticeship Funding for Small Businesses

How Much Will It Cost To Fund an Apprentice?

If your business pays less than £3 million in payroll each year, the government will cover 95% of the costs of your apprentice’s training. The training must be carried out through a registered training provider.

You can learn more about how much apprenticeship training costs below. As an employer, you’ll only need to contribute 5% of the training fees. You’ll may also be able to access apprenticeship grants.

If you’re a very small business and have less than 50 staff, the government will fully fund apprenticeship training for any apprentices you take on who are 16-18.

Are There Grants Available for Apprenticeships?

There are currently some fantastic grants available for businesses who take on apprentices. 

Businesses will gain a £3,000 for every apprentice they take on, no matter how old they are. They can also gain a bonus £1,000 if the apprentice is 16-18 years old and the business has under 50 employees.

If you’d like to learn more about the current Apprenticeship Incentive Grants which end September 30th 2021, you can get the full details here.

How Will My Business Fund Apprenticeships?

Apprentice under 19 years old

Apprentice 19 years or older

Your business has less than 50 employees

Apprenticeships will be fully funded by the government

Your business will contribute 5% of the overall cost of funding an apprentice

Your business has more than 50 employees

Your business will contribute 5% of the overall cost of funding an apprentice

Your business will contribute 5% of the overall cost of funding an apprentice

Your business pays out more than £3million in payroll each year

You will need to fund apprentices using your apprenticeships levy pot

You will need to fund apprentices using your apprenticeships levy pot

Apprenticeship Funding for Small Businesses

How Do Businesses Access Apprenticeship Funding?

Any business that would like to take on an apprentice, or use an apprenticeship to upskill their staff, must register with the online Apprenticeships Service

How Much Will an Apprenticeship Training Provider Charge?

Training providers price their courses using the government’s official maximum funding bands. Generally, a Level 2 – 3 qualification will cost around £2,000 – £3,000. A degree level apprenticeship could cost up to £27,000.

But don’t forget, as an employer you’ll only contribute a maximum of 5%, and the government will cover the remaining fees. 

That means a Level 2 qualification could cost your organisation as little as £100. A complete level 7 degree could cost as little as £1,350. That’s much more affordable to your business than putting an employee through a part-time university degree.

Apprenticeship Funding

Tips for Funding Apprenticeships

Learn More About Apprenticeship Funding

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