Apprenticeship funding at a glance

How much an employer has to pay towards the cost of training an apprentice depends on the company’s wage bill and number of employees.

Less than 50 employees and wage bill of less than £3million per annum*: • Training for apprentices aged 16-18 is free. • For apprentices aged 19 or over the employer is required to make a contribution of 5% of the cost of the training

More than 50 employees and a wage bill of less than £3million per annum*: • Employer makes a 5% contribution towards the training of apprenticeships for new and existing staff

Salary bill of over £3million per annum*: • Employer makes a 0.5% contribution of the annual salary bill to the apprenticeship levy through PAYE • For every £1 paid into the levy pot the employer gets £1.10 to spend on apprenticeship training

* £1000 cash incentive available for the enrolment of a new or existing employee, aged 16–18, onto an apprenticeship