Funding and the apprenticeship levy

As well as being a great way to build the skills of your workforce, degree apprenticeships can be exceptionally good value.

While the cost of an apprenticeship will vary, the funding has been designed to make it easy and affordable for employers to sign up:   

• If you pay the apprentice levy, you can put your contributions towards the course costs.

• If you do not pay the levy or have insufficient contributions, the government will pay at least 95% of the cost.

For a full list of eligibility criteria, go to the government website.

Levy payer

If your annual pay bill is more than £3million

You can put your levy contributions towards the cost of a degree apprenticeship.

If your apprenticeship levy pot covers the course costs, you will not need to make any additional payments. If the pot has been exhausted, the government will pay at least 95% of the fees.

You can also get a £1,000 support payment from the government if one of these applies to your apprentice:

• is under 19 when they start the apprenticeship

• is under 25 and a care leaver when they start the apprenticeship

• has a local authority education, health and care plan

Non-levy payer

If your annual pay bill is less than £3million

The government will pay at least 95% of tuition fees for any apprentice.

You could get extra financial help, depending on how many people you employ and your apprentice’s personal circumstances.

You could get a £1,000 support payment from the government if one of these applies to your apprentice:

• is under 19 when they start the apprenticeship

• is under 24 and a care leaver when they start the apprenticeship

• has a local authority education, health and care plan

If you employ fewer than 50 people and your apprentice is under 19 at the start of the apprenticeship, the government will pay all of the tuition fees and give you the £1,000 support payment.

Wages, national insurance and other benefits

Apprentices are full-time employees. They are entitled to a wage, statutory holidays and paid time off to study.

You will need to pay apprentices a salary of at least the applicable National Minimum Wage.

If your apprentice is under 25, you do not have to pay Class 1 National Insurance contributions.