Apprenticeship Levy
Make the most of your Levy funds to develop your workforce.
At a glance
✓ Who is it for?
The Apprenticeship Levy is paid by employers with an annual pay bill of more than £3 million.
✓ What can it be used for?
Use the funds in your Levy account towards eligible apprenticeship training and assessment for new recruits or existing employees of any age.
✓ Why use it?
Your Levy is there to invest in skills. Using it effectively can help you recruit and upskill your existing workforce while reducing the cost of staff development.
✓ Need help?
We’ll help you understand your available Levy funds, identify the right apprenticeship programmes for your people and make the most of your apprenticeship budget – including your options if your Levy funds run out.
Recent changes
From 1 August 2026:
✓ The Government’s 10% levy top-up ended.
✓ Levy funds now expire after 12 months if they are not used.
✓ Used all your Levy funds? For new apprenticeship starts, eligible apprentices aged 16-24 can still be 100% Government funded. For apprentices aged 25+, the Government generally funds 75% of eligible training costs, with the employer contributing 25%.
View Apprenticeship Levy Guidance
Non-Levy Funding
Don’t pay the Apprenticeship Levy? Government funding can cover most - and in some cases all - of your apprenticeship training costs.
At a glance
✓ Who is it for?
Employers who do not pay the Apprenticeship Levy.
✓ How much is funded?
For apprentices aged 25+, the Government generally funds 95% of eligible apprenticeship training costs, with the employer contributing just 5%.*
✓ What about apprentices aged 16–24?
For eligible apprenticeship starts from 1 August 2026, training and assessment costs can be 100% Government funded, up to the funding band maximum.
✓ Can I train existing employees?
Yes. Apprenticeship funding isn’t just for new recruits – it can also be used to develop eligible members of your existing workforce.
What this means for your business
Whether you’re recruiting someone new or developing the people you already have, apprenticeship funding can significantly reduce the cost of building the skills your business needs.
Not sure what you’ll need to contribute? We’ll help you work it out.
View Government Funding Guidance
£2,000 Hiring Incentive
Recruiting new talent? Eligible non-Levy employers could receive a £2,000 hiring payment when taking on an apprentice aged 16–24.
At a glance
✓ Who is it for?
Eligible non-Levy employers recruiting a new apprentice aged 16–24.
✓ How much is available?
A total employer payment of £2,000.
✓ How is it paid?
• £1,000 after 90 days in learning
• £1,000 after 365 days in learning (or earlier for eligible apprenticeships lasting less than 12 months)
What you need to know
Eligibility depends on criteria including the apprentice’s age, their apprenticeship start date and Apprenticeship Service requirements.
Not sure whether your new recruit qualifies? Talk to us and we’ll help you check.
View Hiring Incentive Guidance
Additional £1,000 Employer Payment
You could receive an additional £1,000 when taking on an eligible young apprentice or an apprentice with additional needs.
At a glance
✓ Who could qualify?
Employers taking on:
• An apprentice aged 16-18;
• An apprentice aged 19-24 with an Education, Health and Care Plan (EHCP); or
• An apprentice aged 19-24 who has previously been in local authority care.
✓ How much is available?
A total payment of £1,000.
✓ How is it paid?
• £500 after 90 days
• £500 after 365 days
This payment is in addition to eligible apprenticeship training funding.
View Additional Payments Guidance
Youth Jobs Grant
Recruiting a young person? Your business could receive additional Government support of up to £3,000.
At a glance
✓ How much is available?
Eligible employers could receive up to £3,000.
✓ Who is it for?
Employers recruiting qualifying young people aged 18–24.
✓ What are the key eligibility requirements?
The young person must meet the Government’s eligibility criteria, including requirements relating to Universal Credit, working hours and pay.
✓ How do I apply?
Applications are made directly through the Government scheme.
Think you might qualify? Check the Government guidance or speak to our team about the apprenticeship funding available alongside the grant.
View Youth Jobs Grant
Levy Transfers
Don't have enough apprenticeship funding? Another employer's unused Levy funds could help.
At a glance
✓ What is a Levy transfer?
Levy-paying employers can transfer up to 50% of their unused Levy funds to another employer to support apprenticeship training.
✓ What can transferred funds pay for?
Transferred Levy funds can cover 100% of eligible apprenticeship training and assessment costs, up to the funding band maximum.
✓ Who can benefit?
Levy transfers can provide another funding route for employers looking to recruit apprentices or develop existing employees.
✓ Need help?
We’ll help you understand whether a Levy transfer could be an option for your organisation and explain what to do next.
Learn About Levy Transfers
Employer Contributions
How much will my business need to pay?
The answer depends on your organisation, the apprentice and the funding available.
At a glance
✓ Non-Levy employers
Eligible apprentices aged 16–24 can be fully funded. For apprentices aged 25+, employers generally contribute 5% towards eligible training costs.*
✓ Levy-paying employers
Training can be paid for using available funds in your Levy account. Different co-investment rules can apply if those funds are exhausted.
✓ Levy transfers
Transferred Levy funds can cover 100% of eligible apprenticeship training and assessment costs.
Still not sure what you’ll pay?
That’s exactly what we’re here for. Talk to us about the apprentice you’re considering and we’ll help you understand the funding available and any contribution your business may need to make.
Read More About Employer Contributions
National Insurance Savings
Hiring an apprentice under 25 could also help reduce your employment costs.
At a glance
✓ Potential National Insurance savings
Employers may not need to pay employer National Insurance contributions for eligible apprentices under 25, subject to HMRC rules and earnings thresholds.
✓ Reduce the overall cost of recruitment
These savings can sit alongside eligible apprenticeship funding and employer incentives.
✓ More than just training funding
When you consider training funding, available incentives and potential employment savings together, recruiting an apprentice can be a cost-effective way to grow your team.
Check the latest HMRC guidance to see whether the exemption applies to your apprentice.
View HMRC Guidance