APPRENTICESHIP FUNDING

For employers in England, apprenticeship funding is widely available. In addition to national government funding schemes, there are also a range of regional and local grants, and Levy transfer schemes.

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What Apprenticeship Funding is available?

In England, there are different types and amounts of funding available for apprenticeships, which will vary depending on the individual apprentice and their circumstances, the apprenticeship programme, and the size of your company.

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Co-Investment Model

For non-Levy paying organisations, apprenticeships are funded through the co-investment model. This means that the government will cover 95% of the cost of apprenticeship training up to the funding cap for your chosen programme.

You as the employer will then only need to pay the remaining 5% of the training costs. This payment will be made upfront to the training provider you choose to work with. This co-investment model also applies to Levy paying employers who run out of available funds in their apprenticeship service account.

If your business falls into the co-investment category, you are in a fantastic position to take advantage of government funding for apprenticeships. In return for your 5% contribution towards training costs, you’ll get a passionate and enthusiastic team member that will benefit your business for years to come.

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Apprenticeship Levy

For large organisations with an annual salary bill of over £3 million, the Apprenticeship Levy acts as a pre-paid funding pot to use on apprenticeship training for new and existing employees. The Apprenticeship Levy is charged at a rate of 0.5% of your salary bill over the £3 million annual threshold.

This is a ringfenced pot that your business can use to grow and develop your team through apprenticeships. You can spend your Apprenticeship Levy funds on training and assessment costs for new apprentices, or for professional development apprenticeship courses designed to develop your existing employees.

Learn more about the Apprenticeship Levy
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£1000 Young Apprentice Grant

There are many benefits to helping a young person into employment.

Alongside the government funding available to cover apprenticeship training costs, there is also a government grant of £1000 for employers who take on an apprentice aged between 16 and 18.

This grant is also available to employers who take on an apprentice aged 19 to 25 years old that has an education, health, and care (EHC) plan or has been in the care of their local authority.

Additionally, businesses do not need to make national insurance contributions for apprentices under the age of 25.

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Regional Funding

Below, we have created a list of apprenticeship funding opportunities by region.

Please note that the information provided on this page is intended to serve as a general guide only. We have made every effort to ensure that the information is accurate at the time of publication. However, please be aware that these funding schemes are not administered by Baltic Apprenticeships, and as such, they may have limited availability, specific eligibility requirements, and could close at any time.

Additionally, this list is not exhaustive, and there may be additional funding schemes available in your local area. If you are operating an apprenticeship grant or an Apprenticeship Levy transfer scheme and would like to be included in this list, please do not hesitate to get in touch with us.

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FUNDING IN THE NORTH EAST

Explore apprenticeship funding opportunities in the North East

Sunderland City Council has unspent levy funds and are seeking applications from Sunderland businesses who would like to develop their workforce. This funding can benefit both SMEs and larger organisations.

Full details are available from Sunderland City Council.

Newcastle City Council offer an apprenticeship levy scheme to businesses who deliver a service within Newcastle, are a non levy paying employer, have 250 or fewer employees & are accredited under the Good Work Pledge or can demonstrate you are actively working towards it.

Find out more details on Newcastle City Council’s website.

Tees Valley Combined Authority offer grants up to £3000 to employers creating new apprenticeship opportunities in the Tees Valley areas of Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton-on-Tees.

The grant supports SMEs in high demand, high growth sectors.

Details are available through the Tees Valley Combined Authority.

Durham University are offering apprenticeship funding to all job roles & all apprenticeship levels in Durham.

In 2022/23 the total amount of funding available across the city is £129,372.

Apply for apprenticeship funding in Durham.

Businesses in South Tyneside are being invited to bid for a share of a £35,000 pot of money. The money, an underspend in the council’s apprenticeship levy, can be transferred to local firms to pay for the training and assessment costs of taking on an apprentice.

Read further by visiting the South Tyneside Council’s website.

FUNDING IN THE NORTH WEST

Explore apprenticeship funding opportunities in the North West

Cheshire East Council can transfer up to 25% of their apprenticeship funds to other employers, helping in turn to raise the number of high-quality apprenticeships across Cheshire East.

Visit their website to find out how to access apprenticeship levy funds.

Greater Manchester Combined Authority provides apprenticeship funding in order to create more apprenticeship opportunities across the city.

Employers large and small can register on this website to transfer or receive funds from their apprenticeship digital accounts covering the training costs of a specified apprentice.

The Liverpool City Region Combined Authority provide advice and support around Levy Transfers between employers alongside providing advice and guidance on how to maximise Apprenticeship funding.

More details about this Apprenticeship Brokerage can be found on Liverpool City Region Combined Authority’s website.

Lancashire County Council has been paying into the Apprenticeship Levy, since April 2017.

This allows employers based in Lancashire the opportunity to bid for surplus funds and access high-quality training for their organisation.

Further information & how to access these funds can be found on Lancashire County Council’s website.

FUNDING IN THE SOUTH EAST

Explore apprenticeship funding opportunities in the South East

As a large levy paying employer, Brighton & Hove City Council can now transfer up to 25% of its apprenticeship levy funds to other employers in the city.

To apply for levy transfer funds in this area, you must be a non-levy payer.

Brighton & Hove City Council can support employers in the city to take on new apprentices and develop the skills of existing employees.

Southampton City Council are a large levy paying employer, meaning they can transfer up to 25% of their apprenticeship levy funds to local organisations to boost the use of apprenticeships within the city.

Read further & find out how to access this apprenticeship levy.

Kent County Council are an apprenticeship levy payer and have been able to invest in high-quality training to develop our skilled workforce and recruit apprentices.

Kent County Council can transfer up to 25% of their apprenticeship levy funds to Kent employers.

Find out what funding is available to your business for apprenticeships in Kent.

Surrey County Council want to see levy transfers generate apprenticeship opportunities and offer inclusive career pathways into employment that their residents can benefit from.

The council receives a high level of demand for support and their transfer funds are limited. Applications will be processed in the order in which they are received and they will need to demonstrate how the apprenticeship will contribute to Surrey’s priority aims.

Access Surrey County Councils Levy Transfer.

West Sussex County Council are a large levy-paying employer, the council can transfer up to 25% of its apprenticeship levy funding to other employers for their apprenticeship training, helping to further boost the number of high quality apprenticeships in West Sussex.

Find out more about West Sussex’s Apprenticeship Levy.

FUNDING IN THE SOUTH WEST

Explore apprenticeship funding opportunities in the South West

Somerset County Council offers Apprenticeship Levy transfers, businesses paying the Apprenticeship Levy can now transfer 25% of their credit each year to fund apprenticeships hosted by other employers.

If an apprentice/employer meets the criteria Somerset County Council will accept an expression of interest to fund the candidate via levy transfer.

View the criteria for Somerset County Council’s Levy Transfer.

Through the apprenticeship levy transfer arrangement, Devon County Council works in partnership with other employers, supporting them to take on new apprentices and to develop existing employees, by funding apprenticeship training.

The council can only transfer up to a maximum of 25% of its levy funds per annum.

This grant is available for young people starting an apprenticeship.

Wiltshire Community Foundation is an independent charity which offers grants of up to £1,000 to support the costs of an apprenticeship or vocational training for young people in Wiltshire and Swindon.

Grants can be used for resources or equipment to support courses or training, course related study or field trips & IT equipment.

Full details about the apprenticeship grant in Wiltshire can be found on this website.

Employers within the West of England Combined Authority area can access support for apprenticeships through the Workforce for the Future Scheme and Share to Support.

These schemes allow apprentice-levy paying employers to pass on their unused levy funds to allow smaller local businesses to pay for the costs of training new starters or develop existing employees’ skills set.

Find out more about apprenticeship funding through the West of England Combined Authority.

Cornwall Council is a large levy paying employer with an ambitious Apprentice Strategy. The council can transfer up to 25% of their apprenticeship levy funds to other employers.

Employers must show how their apprenticeship will add to the Council’s strategic aims.

Find out more about the Cornwall Council Apprenticeship Levy funding.

As a large levy paying employer, BPC are able to work in partnership with other local employers to help improve the skills and knowledge of the local workforce, by transferring a percentage of their apprenticeship levy funds.

Apply for apprenticeship levy funds in Bournemouth.

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APPRENTICESHIP FUNDING FAQS

If you are an employer with a pay bill of over £3 million each year, you will pay into the Apprenticeship Levy. This means you will have an apprenticeship levy fund that is already ringfenced for training costs.

For smaller businesses who do not pay the Apprenticeship Levy, the Government will contribute 95% towards the cost of apprenticeship training, with employers topping up the last 5% as a co-investment payment.

For eligible SMEs with under 50 employees, the Government can fund 100% of training costs if the apprentice is aged 16-18. This also applies for apprentices aged 19-24 with an EHC plan from their local authority.

For all employers, cash grants of £1000 are currently available to take on an apprentice aged 16-18. This also applies for apprentices aged 19-24 with an EHC plan from their local authority.

Our recruitment process is completely free! For employers, the only cost of hiring an apprentice are wages and training costs. Training costs depend on the size of your business, and government funding is available.

The cost of our programmes ranges from £11,000 – £18,000, however, the government will fund between 95-100% of this if you do not pay into the apprenticeship levy.

If you pay into the apprenticeship levy, the cost of the programme will be paid in monthly instalments using your levy funds.

The current National Apprenticeship Minimum Wage is £5.28 an hour, regardless of age. For apprentices aged 19 or over, this is raised to the National Minimum Wage for their age group after the first year of training.

We recommend paying more than the National Apprenticeship Minimum Wage, as a higher wage recognises the value that apprentices bring to an organisation, promotes loyalty and will boost job satisfaction.

If you are an employer with a pay bill of over £3 million each year, you will pay into the Apprenticeship Levy. This means you will have an apprenticeship levy fund that is already ringfenced for training costs.

For smaller businesses who do not pay the Apprenticeship Levy, the Government will contribute 95% towards the cost of apprenticeship training, with employers topping up the last 5% as a co-investment payment.

For eligible SMEs with under 50 employees, the Government can fund 100% of training costs if the apprentice is aged 16-18. This also applies for apprentices aged 19-24 with an EHC plan from their local authority.

For all employers, cash grants of £1000 are currently available to take on an apprentice aged 16-18. This also applies for apprentices aged 19-24 with an EHC plan from their local authority.

Apprenticeships in England are funded through two primary routes: The Apprenticeship Levy and Government Co-Investment. The Apprenticeship Levy applies to large organisations, while Co-investment is available to SMEs.

Alongside these funding mechanisms, there are also a range of apprenticeship grants for employers who meet certain conditions.

If your business has a salary bill of less than £3 million, you will not contribute to the Apprenticeship Levy. Instead, you will be able to claim government co-investment towards the costs of apprenticeship training.

As an employer, you will pay only 5% of your apprentice’s training and assessment fees, while the Government contribute 95%.

If you have less than 50 employees and your new apprentice is aged between 16-18, the government will waive the 5% contribution, covering 100% of training costs.

The majority of apprenticeship funding is administered via the digital Apprenticeship Service. This is a government-operated system where employers can register apprentices, apply for national funding schemes, and search for other employers with Levy Funds to share.

Many local councils or combined Authorities also offer grants for hiring apprentices, or run their own levy transfer schemes.

The Apprenticeship Levy is a ringfenced fund for large employers intended to encourage investment in apprenticeship training. If your organisation has an annual salary bill of over £3 million, you will pay into an Apprenticeship Levy fund.

Employers who pay the levy contribute 0.5% of their salary bill. The Apprenticeship Levy can be used to pay for training costs of new apprentices, or to enrol existing staff on professional development apprenticeships.

Your levy funds can be used to pay for apprenticeship training and assessment costs. However, this does not include other costs associated with apprenticeships such as wages, travel expenses or equipment!

You can use your Apprenticeship Levy funds to recruit new talent across your business, this is a cost-effective way to make sure you protect your organisation from skills gaps and a competitive candidate market.

Your levy funds can also be used to train and develop your current employees – from juniors up to senior management. Whether you have a team member who is looking to upskill and advance in their career, or looking to reskill and move into a different department – our team can help.

If you’re a business in England with an annual salary bill of over £3 million – then you will pay into the Apprenticeship Levy. If your company is part of a group under shared ownership, you’ll likely have one shared levy pot between all organisations in the group.

You can access your funds through your Digital Apprenticeship Service account. If you don’t have an account, you’ll need to create one prior to your apprentice being enrolled on their programme as it’s a mandatory requirement.

This online service will allow you to financially manage your apprenticeship programmes and help you to estimate your financial spend.

You can see funds appear in your digital account monthly, a few working days after you have confirmed your salary bill and levy contribution to HRMC for the previous month. You can then use the account to set up apprenticeships and authorise payments to training providers.

If you run out of levy funds, the remaining training costs for that month will come out of the ‘co-investment’ model. This means that the government will fund 95% of any outstanding costs, and you will need to cover the remaining 5%.

Levy funds expire 24 months after they enter your account unless you spend them on apprenticeship training. Levy spend will be applied on a first in, first out basis and applies to any government top-ups in your digital account.

For example, if you started paying into the levy in April 2019 and you haven’t spent any of the funds, they will start to expire on a rolling monthly basis starting from April 2021.

Yes, Levy transfers can be used to cover the costs of apprenticeship training, particularly for medium-sized businesses who do not always qualify for 100% funding support.

Yes, we can! If your organisation has Apprenticeship Levy funds due to expire, our team can help you transfer these funds and generate much-needed apprenticeship opportunities.

Please get in touch with our team to get the process started.

If you are taking on an apprentice who has previously been in care, there are some additional funds to be aware of.

Care leavers who go onto an apprenticeship programme could be eligible to receive a bursary of £1000.

Employers could also claim additional funding of £1000 if an apprentice is aged between 19 and 24 years old and has either an Education, Health and Care (EHC) plan, or has been in the care of their local authority.

Speak to our team about your funding options

Complete the form and a member of our team will be in touch in the next 48 hours.

BECOME AN APPRENTICE

Becoming an apprentice can be one of the most rewarding career decisions you ever make. Unlike University, apprenticeships offer earn while you learn opportunities, setting you up for success in the tech & digital sector.

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RECRUIT AN APPRENTICE

Recruiting an apprentice helps businesses build a pipeline of future tech talent, avoiding high recruitment costs and lack of candidate availability associated with the tech & digital sector.

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PROFESSIONAL DEVELOPMENT

Apprenticeships aren’t just for new hires, they’re a powerful tool for CPD. Whether you’re looking to enhance your team’s performance or utilise your Apprenticeship Levy, our higher apprenticeships could be the perfect solution.

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