Apprenticeship Funding Rules: What does an Apprenticeship cost to employers?

Apprenticeships are paid/funded by two methods, which are determined based on the size of the company. 

Below < 50 Employees: 

If your company employs/contracts less than 50 individuals in a year, the apprenticeship will be completely funded by the government. 

50+ but below 3 million in wages: 

If your company employs more than 50 individuals, the company will have to contribute 5% of the cost of the apprenticeship and the government will fund the rest. The cost of each apprenticeship we offer is displayed below. 

3 million + wage bill:  

If you have a 3 million + wage bill you are classed as Levy payer, meaning you will pay a certain amount into your levy fund. The Levy fund is used to fund apprenticeships; therefore, the apprenticeship will be funded using this fund. If you have remaining funds and don’t want to hire or put existing staff on apprenticeships, this fund can be used to fund apprenticeships for other companies and organisations. 

All apprenticeships cost different amounts, below is the list of apprenticeships we offer and maximum funding amounts (5% in backets). 

Check out the institute of apprenticeships for more information on the funding and details for each course (LINK). 

There is a minimum wage salary for apprentices set by the government. 

An apprentice aged 19 or over can be paid the national apprenticeship minimum wage for the first year of the apprenticeship. After this year they must be paid at least the minimum wage for their age. 

Every apprentice must be paid a lawful wage while employed whether working on the job or off the job*. You can only use the apprentice rate of the national minimum wage from the apprenticeship start date and not before. Where an individual permanently withdraws from the apprenticeship and is no longer an apprentice, the employer must not continue to use the apprentice rate of the national minimum wage. This does not apply to those on a break in learning.  

The apprentice must be employed for a minimum of 30 hours per week. Working fewer than 30 hours per week or having a zero-hours contract isn’t a barrier to successfully completing an apprenticeship but comes with a strict set of guidelines. (LINK) 

We recommend hiring an apprentice on a full-time contract as it will give the individual the time and stability, they need to get the most out of the apprenticeship. Also paying more than minimum wage will help attract better applicants, better support apprentices financially, increase retention, improve motivation and make them feel more valued. Get in touch with us to speak more about attracting the right candidate (LINK) 

This guide roughly breaks down the costs of an apprenticeship and allows you to estimate what the apprenticeship will cost your business. For a more detailed discussion please get in touch with James, our business development manager. This conversation will look at all the aspects that will determine the cost of the apprenticeship. We will also go through this step by step when you are ready to recruit an apprentice.  

For further information on apprenticeship funding, check out the government guide (LINK)