Apprenticeship Funding Explained…

There seems to be a lot of confusion around the new apprenticeship funding system, so we’ve broken it down into bite size chunks. This post should clear up any queries you have in regards to the new apprenticeship funding system and the Apprenticeship Levy. In essence, the way your apprenticeship funding will work depends on the size of your business:


Companies with a payroll of over £3m
  • Pay an apprenticeship ‘levy’ equal to 0.5% of their total payroll
  • This is paid monthly into the Digital Apprenticeship System (DAS) Account
  • These funds are topped up by 10% by the Government
  • The funds are redeemable through employing apprentices
  • Apprenticeships can be undertaken by new or existing staff


Companies with over 50 employees, but less than £3m payroll
  • Contribute 10% towards the cost of training
  • Funding available for new and existing staff
  • £1000 cash incentive for employing 16-18 year olds


Companies with under 50 employees
  • The government fully funds apprenticeships, making the training free for the employer
  • Funding available to train existing staff or recruit new apprentices
  • £1000 cash incentive for employing 16-18 year olds


If you still have questions about apprenticeship funding, then please contact us and we’ll be happy to help!