- Funding
Funding is Available for Every Employed Person in England! When people hear the word “apprenticeship”, they often assume it means hiring a young, inexperienced person straight out of school.
But that’s no longer the case. In fact, according to recent government data, 75–80% of apprenticeship funding is now used to upskill existing staff. From entry-level roles to senior leadership training, apprenticeships offer funded qualifications for people already in your business.
Key Funding Facts
- All English employers are eligible irrespective of size.
- Any age of candidate (16 or over) is eligible.
- Those aged 22 or above are 95% funded.
- Candidates under 22 are fully funded, Candidates under 25 are exempt from employers NI contributions, Candidates Under 19 attract a £1,000 employer incentive payment.
How Much is Funded?
At least 95% of the training costs are covered for every eligible apprenticeship.
In many cases, 100% of the cost can be funded — especially for small employers or younger learners.
Employers may also receive additional financial incentives and tax savings.
The way funding works depends on two things:
- Your organisation’s annual payroll size
- The age of the learner
Levy-Paying Employers (Payroll over £3 million/year)
- You already pay into the Apprenticeship Levy (0.5% of your payroll above £3m topped up by 10% from the government).
- This money goes into your digital apprenticeship account.
- You use these funds to pay for apprenticeship training for new or existing staff.
- If your levy pot runs out, the government covers 95% of the additional cost, and you pay just 5%.
Your money – use it or lose it (levy funds expire after 24 months).
Non-Levy Paying Employers (Payroll under £3 million/year)
- You don’t pay into the levy, but you’re still entitled to government funding.
- The government funds 95% of the training cost.
- You only contribute 5% — for example, just £225 for a £4,500 course.
- In many cases, especially with smaller businesses and young learners, even the 5% can be waived.
Extra Support for Young Learners (Aged 16–18)
- The government funds 100% of the training cost for small employers with fewer than 50 staff when the apprentice is under 19.
- Employers also receive a £1,000 incentive payment for hiring a 16–18-year-old apprentice (or under 25s with an Education, Health and Care Plan).
Employer National Insurance Savings
Employer National Insurance Savings
If your apprentice is under 25, you’re exempt from paying employer National Insurance contributions on their salary (up to the Upper Earnings Limit).
Example:
- Apprentice age: 20
- Hours: 35/week
- Wage: National Minimum Wage for 21-22 year olds (as of April 2025: £8.60/hour)
- Weekly pay: £301
- Annual salary: ~£15,652
- NI saving (13.8%): ~£2,158 over 18 months
That’s a £2,158 tax saving just for hiring one young apprentice!
In Summary
Apprenticeships are not just for new starters or school leavers — they’re a powerful, cost-effective way to develop your current team. With up to 100% funding, tax savings, and incentives, there’s never been a better time to take advantage of government-backed training.
Apprenticeship Levy Transfers – Access More Funding at No Cost
Even if your business doesn’t pay the Apprenticeship Levy, you can still access 100% fully funded training — thanks to the Levy Transfer system.
What is a Levy Transfer?
Large employers (those with a payroll over £3 million) pay the Apprenticeship Levy and often don’t use all their funds. Rather than letting that money expire, they can transfer up to 50% of their unused levy to other employers.
This allows non-levy paying employers (like SMEs or charities) or levy paying employers who have already committed their own funds to receive full funding for apprenticeship training — with no cost to you at all.
What Can Be Covered?
A levy transfer can cover 100% of the apprenticeship training and assessment costs, for:
- New hires
- Existing employees
- Any age group (16+)
- A wide range of qualifications, from entry-level to degree-level
Why Would a Large Employer Do This?
- To support their supply chain or industry sector
- To give back to local communities
- To promote skills in areas they care about (e.g. sustainability, health, tech)
- To prevent unused funds from expiring
How Do You Get a Levy Transfer?
At Funded Training Solutions, we can help:
- Match you with a levy-paying organisation willing to transfer funds
- Manage the application process through the Apprenticeship Service
- Guide you step-by-step so there’s no admin burden on your side
No fees. No repayments. No catch. Just free training, fully funded by another business.
Levy Transfers are a brilliant way for small and medium-sized businesses to access high-quality, fully funded training for their team — even if they don’t pay the Apprenticeship Levy themselves.
Get in touch with us to see if a levy transfer is right for your business. We’ll handle the hard part — you benefit from the funding.