How to fund an apprenticeship

Degree apprenticeships are a way to build skills in your workforce at a low cost, with government funding covering 95% of apprenticeship fees.

Apprenticeships Levy  

If you have an annual pay bill of more than £3 million, you are eligible for the Apprenticeships Levy. The Levy is paid at a rate of 0.5% of your annual pay bill.   

These contributions can be put towards the cost of a degree apprenticeship, and if your pot does not cover the full course costs, the government will pay at least 95% of the fees. 

You may also be eligible to receive a £1,000 support payment if your apprentice: 

  • Is under 19 

  • Is under 25 and a care leaver 

  • Has a local authority education, health and care plan 

This support payment also applies to businesses that are not eligible for the Levy.  

Not eligible for the Levy?  

If your annual pay bill is under £3 million, the government will pay at least 95% of apprenticeship fees.  

You might also be eligible to receive extra financial help, based on variables such as how many staff you employ and your apprentices personal circumstances.   

Employing apprentices 

Apprentices are classed as full-time employees, so are entitled to a full salary and annual leave.  

Apprentices are entitled to at least the National Minimum Wage, although many businesses pay their apprentices at a higher rate than this.

For more information, please see the Government’s guidance on pay and conditions for apprentices.

Find out more about Apprenticeships

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