Government Funded Apprenticeship Schemes

A Complete Guide

Who Pays For Apprenticeship Training?

In short, the employer is responsible for paying for apprenticeship training, but they will be eligible for government funding of 95-100% in most cases.

This means the vast majority of employers pay only 5% of the training fees. That could be £1000s of free training, for a minimal investment.

The only exception is businesses who have a payroll bill of over £3 Million. In this case, the apprenticeship training is funded via the Apprenticeships Levy.

Does The Government Pay Apprentice Wages?

No, the employer who takes on the apprentice is responsible for paying apprenticeship wages.

The point of the scheme is to offer employers an extremely cost-effective way of adding talent to their business with nationally-recognised qualifications.

For example, a business will likely find it is a great benefit to hire an apprentice and train them in the unique practices of the business, while they study for a qualification on an entry-level salary, than to hire someone more expensive, with previous qualifications, who may still need their skills tailored to the business.

Apprenticeships are also a great way of decreasing staff turnover. Mentoring an apprentice creates loyalty and tailored expertise exclusive to your company. Which can be more effective than hiring someone with an expensive wage bill, who may quickly move on to other opportunities.

Do Employers Get Paid For Having An Apprentice?

Sometimes, the government will issue incentive payments. For example, over the COVID-19 pandemic, the government’s economic stimulus package paid employers a grant of up to £4,000 when they took on an apprentice. 

Currently, the government will pay a grant of £1,000 to employers with less than 50 employees, who take on an apprentice who is younger than 19.

This is available on top of the 95-100% funding towards apprentice training.

There's plenty of government funding and incentives available for businesses who wish to take on an apprentice.

The apprenticeships scheme is highly recommended for businesses by the government, and to encourage more businesses to take it up, there are a variety of incentives and funds available.

To discover what your business qualifies for, click on one of the links below: