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How Apprenticeships Are Funded

If you are between the ages of 16 and 24, you will not provide for your tuition; your employer and the goverment will bear the expenses.

If you are above the age of 25, you would be asked to contribute to the cost of your education, so it’s worth talking about this at the interview stage if you know what you’re getting yourself into.

How apprenticeships are funded?

Though they do not do so on their own, they are supported financially by the government as part of an attempt to promote technical and specialised skills training through apprenticeship programmes.

What is the government’s role?

They assist businesses that offer apprenticeships by levying levies (a premium) on enterprises that pay more than £3 million in annual salaries.

They allow ‘licenced’ providers of all sizes to recoup the money they spend on training by adding the apprenticeship levy money with whatever additional support they provide.

The sum collected from the government is proportional to the levy declared to HMRC multiplied by the proportion of their bill paid to eligible employees, plus a 10% government top-up.

For more details, see the gov.uk guide to apprenticeship funding.

Updated on December 23, 2021

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