Apprenticeship Funding, Incentives and Costs
As an employer, you have access to funding to help cover the training costs of an apprenticeship.
If you are interested in exploring this option, Skills Edge can help you understand your funding options, determine which programmes are most suitable for your needs, and manage the administrative requirements to start the process.
The funding available for an apprenticeship will be dependent on the number of employees a business has and/or the age of the apprentice. Each apprenticeship has a total funding value in which the business may need to contribute towards.
Please see the section relevant to your organisation below for further details.
- 16 to 18 years old – This apprenticeship would be fully funded by the Government with no cost to the business.
- Aged 19 or over – The business would make a 5% contribution towards the apprenticeship (eg if the apprenticeship is valued at £9000, the business would make a contribution of £450+VAT).
17 monthly payments of £423.52
Final payment of £1800
Apprenticeship Levy Transfer
The business can look to obtain funds from a levy paying employer. This would mean the apprenticeship is 100% funded, please see details on Apprenticeship Levy Transfer below.
There are cash incentives that employers could be entitled to for hiring an apprentice. Read below to check your eligibility.
aged 16 to 18 years old
aged 19 to 24 with an education, health and care plan or who has been in the care of their local authority
As well as the funding contribution listed above, there may also be additional costs that apply. Please see below for a breakdown of these costs:
Exam Resits – If the apprenticeship contains professional qualifications or functional skills, Skills Edge training will fund the first exam sitting. If the apprentice fails their exam, the business (in line with apprenticeship funding rules) would need to fund the resit.
End Point Assessment Resit – All apprenticeships will contain an End Point Assessment, the first attempt is included as part of the funding. If the apprentice fails any element of their End Point Assessment, the business (in line with apprenticeship funding rules) would need to fund the resit.
Study Books – Apprenticeships that include professional qualifications may only provide apprentices with a digital study book. Employers will need to make a financial contribution if they would like the apprentice to receive the physical study book.
The typical cost to upgrade to a physical study book is £20 to £50 per unit.
CII Membership – If your apprentice is completing a Financial Services or Insurance apprenticeship, they will need to be a CII member. For those that have not been a paid member before, their membership will be funded through the CII Aspire Apprenticeship programme. If candidates have been a paid member before, or their current membership expires during the apprenticeship (excluding CII Aspire Apprenticeship membership), the business would need to fund the membership renewal.
Out of Funding Support – If an apprentice goes beyond their planned end date, they will be classed as out of funding. Skills Edge can continue to support apprentices through to completion but additional charges may apply to continue this support. This will be discussed and agreed on a case by case basis.
Study materials (early leaver) – If an apprentice leaves the apprenticeship within the first 13 weeks of their programme, the business will be required to fund the cost of any study materials Skills Edge has purchased.
Typical costs range from £200 to £500 depending on the apprenticeship being completed.