Apprenticeships funding

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FUNDING APPRENTICESHIPS

Apprenticeships offer a cost-effective way to develop talent and grow your workforce. With government support covering between 95%-100% of apprenticeship training fees, employers can invest in high-quality skills development without paying the full cost.

Whether you're upskilling existing staff or bringing in new talent, apprenticeships provide a smart, affordable route to building the capabilities your organisation needs.

WHAT IS APPRENTICESHIP FUNDING?

Apprenticeship funding is the financial support provided by the government to employers for the training of apprentices. This funding covers the costs associated with apprenticeship training and assessment. The UK government currently funds apprenticeships in England through the apprenticeship levy.

Levy Payers

The apprenticeship levy refers to a tax UK employers have to pay if their annual pay bill is over £3 million. The tax is set at 0.5% of their annual pay bill. These funds are then collected through the levy and are used by employers to cover 100% of the costs associated with apprenticeship training and assessment.

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Non-levy payers

Non-levy employers are eligible for substantial apprenticeship funding support from the government. They can receive 95% of their apprenticeship training fees funded by the government if their annual wage bill falls below £3 million.

If they have over 50 employees and hire an apprentice aged 16 or above, or if they have fewer than 50 employees and hire an apprentice aged 22 or above, they qualify for this level of funding.

100% Training Costs Covered

If you employ fewer than 50 staff and your apprentice is under 22 when they start, the government will fund 100% of the tuition fees.

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BCU Apprenticeship Levy Share Scheme

Birmingham City University is committed to supporting workforce development across the region.

The Birmingham City University Apprenticeship Levy Share Scheme has been launched to help organisations in the West Midlands region to train and develop their workforce.

Through this scheme, we can gift unused levy funds to help other employers cover 100% of the costs of their apprenticeship training.

This is a fantastic opportunity for eligible businesses to access apprenticeships with BCU at no cost.

Before you apply for funding from the scheme you’ll need to:

Have started the recruitment process or identified an existing staff member to join the apprenticeship programme
Know the subject area of the apprenticeship programme you want support for
Understand details of how the opportunity contributes positively to social mobility or equal opportunities
Know an idea of long-term plans for your ‘apprentice’ once they finish their apprenticeship

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Additional support payments

As an employer, you may be eligible for additional financial support when hiring an apprentice. These benefits apply whether or not you pay the Apprenticeship Levy.

£1,000 Government Incentive

You could receive a £1,000 support payment if your apprentice:

Is under 19 at the start of the apprenticeship
Is under 25 and a care leaver
Has an Education, Health and Care (EHC) Plan issued by a local authority

100% Training Costs Covered

If you employ fewer than 50 staff and your apprentice is under 19 when they start, the government will fund 100% of the tuition fees, in addition to the £1,000 payment.

Wages, National Insurance & Other Employer Responsibilities

Apprentices must be employed full-time, earning at least the National Minimum Wage for their age.
They are entitled to paid statutory holidays and time off to study.
If your apprentice is under 25, you are exempt from paying Class 1 National Insurance contributions on their earnings.

Additional Financial Help

You may also qualify for further support depending on your organisation’s size and the apprentice’s individual circumstances.