Funding is available to contribute towards the cost of apprenticeships. The funding is different depending on whether you’re a non-levy payer or a levy payer.
Levy-payers
If you’re a UK employer with an annual payroll of more than £3m, you must pay a levy which can only be used for the training and assessment of apprentices in your organisation.
You’ll fund your apprenticeship through an Apprenticeship Service account established by the Government to which they add 10%. If the cost exceeds the credit in your account, the Government will contribute 95% of these extra costs. If you don't choose to use your levy or donate it the government will reclaim it after 24 months. Where levy funds are insufficient, the Government will fund all the apprenticeship training and assessment costs (up to the maximum) for those apprentices who are aged between 16 and 24 years old (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August) at the start of their apprenticeship training. This applies to new apprenticeship starts from 01 August 2026.
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Non-levy payers
As part of prioritising young apprentices, the Government announced that from 01 August 2026, apprenticeship training and assessment costs for apprentices aged 16-24 (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August) will be fully funded by the Government for non-levy paying employers, up to the maximum. In addition, non-levy paying employers may be eligible for a £2,000 hiring payment when recruiting new apprentices aged 16-24, subject to eligibility requirements.
Where the apprentice is aged 25 or over at the start of their apprenticeship training, the Government will contribute 95% of the apprenticeship training and assessment costs, and the employer will need to contribute the remaining 5%. This is known as ‘co-investment’.
More information can be found in the .
Non-levy payers can now access the government’s Apprenticeship Service (formerly the Digital Apprenticeship Service).
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Levy fund transfers
A levy-paying employer can choose to transfer up to 50% of their annual apprenticeship levy funds to other employers who can then use it to fund learning and assessment of their apprentices. .
If you are an organisation hoping to benefit from a levy transfer, more information is available at , a new service which assists employers to access levy funding from others.
Find out more about how to
Funding to support functional skills
Funding to support functional skills (such as English, maths, and digital competence) for social care in England is primarily available through the Adult Skills Fund (ASF).
The Adult Skills Fund fully funds English, maths, and digital skills qualifications below Level 1 and Level 2 for eligible adult learners aged 19 and older in England.
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Additional funding
Some additional fundingis available for employers, providers and apprentices to help those who may need additional support in the workplace.
Employers and providers
Employers and providers can each receive an extra £1,000 towards the additional costs associated with training when they take on an apprentice who is:
- aged 16 to 18
- aged 19 to 24 and:
- has an education, health and care plan (EHCP); or
- is or has previously been, in care.
Care leavers
Care leavers can face additional financial barriers when starting an apprenticeship, so apprentices aged 16 to 24 who have been, or are currently, in the care of their local authority, can receive a bursary of £3,000 to help them access and complete an apprenticeship.
For further information see the
Further sources of information
Additional information on all apprenticeship rules and funding can be found in the below resources.