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The funding method for an apprenticeship is determined before the start of each apprentice’s programme, and will depend on whether the employer pays the apprenticeship levy.  Apprenticeships can be funding in the following ways:

  • Employers using their Apprenticeship Levy
  • Employers accessing Government-Employer Co-Investment
  • Employers accessing 100% Government Funding
  • Employers accessing 100% Levy Transfer Funding

The apprenticeship funding system includes funding bands to which each Apprenticeship Standard is assigned.  Employers must negotiate a price for their apprentice’s training and assessment with their main provider, in the knowledge that the funding band sets the maximum that Government is prepared to contribute towards the off-the-job training and assessment, including End-Point Assessment for each apprenticeship.

The upper limit of each funding band represents the maximum amount of funds that an employer who pays the levy can use towards an individual apprenticeship from their apprenticeship service account. The employer will need to meet any costs above this from their own resources. The upper limit of the funding bands also represents the maximum price that government will ‘co-invest’ towards, where an employer does not pay the levy or has insufficient funds in their account.

Apprenticeship funding only pays for apprenticeship training and assessment delivered by an approved training provider.  Any costs beyond the training itself and assessment, including the Apprentice’s wages and any travel or expenses incurred during the apprenticeship, must be covered by the Employer.

For more information on Apprenticeship Funding please refer to the UK Government’s Apprenticeship Funding Rules.