Costs and Funding

Apprenticeships are a cost-effective way to bring both new talent into your business and recognise and professionally develop existing staff members.

In England the apprenticeships that we offer are funded by the Education and Skills Funding Agency (ESFA) who are government owned. This means that you as an employer must contribute very little towards the cost of training.

Funding is allocated differently in Wales, please click here to find out the latest guidance.

What can I expect to contribute?

In England, funding often depends on two factors, the size of your business and the age of the apprentice you would like to recruit. Please see the tables below to get an indication of what you could be expected to contribute. 

Small Employer 0-49 Employees 

Is your apprentice 16-18 years old? 

Yes - No Contribution required as fully funded through ESFA

No - You will be required to contribute 5% of the total cost for the apprenticeship, price is often determined based on a prospective apprentices’ level of Recognised Prior Learning if applicable. 

Medium – Large Employer Non-Levy, 50 Employees or more

Is your apprentice 16-18 years old? 

Yes - You will be required to contribute 5% of the total cost for the apprenticeship, price is often determined based on a prospective apprentices’ level of Recognised Prior Learning if applicable. 

In England, if you take on an apprentice aged 16-18 or a 19+ with additional learning needs you will receive a £1,000 grant from the UK government

Apprentices hired between 1 August 2020 and 31 March 2021

Apprentices hired between 1 April 2021 and 30 September 2021

Apprentices hired between 1 August 2020 and 31 March 2021

The government’s Plan for Jobs  scheme is designed to help to stimulate the nation’s economic recovery following the fallout from Covid-19.  Under Plan for Jobs, in recognition of the value that apprentices can bring to the economy, an incentive payment of up to £3,000 per apprentice will be made to employers who hire an apprentice between 1 August 2020 and 31 March 2021.  Employers have until 31 May 2021 to apply for this grant.

This scheme applies to apprenticeships in England only.

Download our sharable pdf below which outlines the new government funding

The Plan for Jobs Scheme 2020-21

How to claim the grant – August 2020 – March 2021

Official Government guidance can be found by clicking here

Apprentices hired between 1 April 2021 and 30 September 2021

Available funding for apprentices aged 16-18: £4,000

Available funding for apprentices aged 19 and over: £3,000

In March, the Government announced that cash payments for employers who take on apprentices are increasing to their highest level ever. Employers can claim the incentive grant for apprentices hired between 1 April 2021 and 30 September 2021.

For an apprentice of any age, employers can claim a grant of £3,000 to put towards their training, their salary, or equipment.

This is in addition to the existing £1,000 payment for all new 16-18-year-old apprentices (and those aged under 25 with an Education, Health and Care Plan, where applicable). This means that an employer of a 16-18-year-old will receive £4,000.

Employers are required to register for The Apprenticeship Service (TAS) and reserve their funding prior to making the claim for the grant, if this is not done then the claim cannot be made. Eligible employers can make a claim via the TAS portal from 1 June 2021.

Official Government guidance can be found here.

Click here to find out more information on how to claim the grant.

Further information on how to access the TAS portal can be found further down this webpage.

The Apprenticeship Levy

If you have a company pay bill of over £3 million then you are required to pay the Apprenticeship Levy. This is a requirement by government and means you must contribute 0.5% of your annual salary bill to taking on apprentices.

For more information on the Levy please visit the government website.

ESFA Funding Process Guidance 

The Education and Skills Funding Agency (ESFA) have confirmed a new funding process for small and medium businesses. Employers taking on new apprentices in 2020 will now be required to access government funding for apprenticeships using the gov.uk portal, The Apprenticeship Service (TAS).

We have created easy to follow, step by step guidance to make this process as simple as possible, please click on the links below.

How to access the TAS portal

ESFA Funding process guidance PDF

Other costs to consider

You, the Employer must pay the apprentice at least the minimum wage.
PPE and basic tools are the responsibility of the Employer
Grants and funding may be available speak to our advisors who will be happy to offer advice and guidance

Further guidance

View and download our handy guides below and our FAQ’s may clarify apprenticeship funding further.

A guide to apprenticeship funding rules

JTL funding support package 2020-21

Registering for ESFA Apprenticeship funding as an Employer

FAQs

Find out more