Guide
What the government pays towards apprenticeship training in England
Updated
This is the largest and most reliable business subsidy most employers never claim, and unlike a grant there is no competition for it.
Question 1
Where is the business based?
Business support is partly devolved. UK-wide tax reliefs and Innovate UK competitions apply everywhere, but the grant programmes and the advice services differ by nation.
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What you pay, by employer type and apprentice age
| Employer | Apprentice aged 16 to 24 | All other apprentices |
|---|---|---|
| Does not pay the apprenticeship levy | You pay nothing: government pays 100% up to the funding band maximum | You pay 5%, government pays 95% |
| Pays the levy, funds available | Paid from your apprenticeship service funds | Paid from your apprenticeship service funds |
| Pays the levy, funds exhausted | You pay nothing: government pays 100% | You pay 25%, government pays 75% |
The 16 to 24 band also covers an apprentice aged 15 whose 16th birthday falls between the last Friday of June and 31 August. All figures are capped at the funding band maximum for the apprenticeship standard, so check the band before you agree a price with a training provider (gov.uk, checked 15 August 2026).
The cash payments on top
- £1,000 for workplace costs where the apprentice is 16 to 18 at the start of training, or 19 to 24 with an education, health and care plan, or 19 to 24 and has been in care. Paid by the training provider in two instalments of £500 once eligibility is confirmed, and spendable on equipment, travel or uniform.
- Up to £2,000 hiring payment from 1 October 2026 when recruiting new apprentices aged 16 to 24. gov.uk directs employers to check the funding rules to confirm eligibility, so read those before budgeting for it.
The steps, in the order that avoids rework
- Choose the apprenticeship standard for the role, then find a training provider that offers it.
- Check the funding band maximum for that standard, because anything above it comes out of your own pocket in full.
- Create an apprenticeship service account: you need it to manage funding and to recruit.
- Advertise the apprenticeship, or give the training provider permission to do it for you.
- Make an apprenticeship agreement and a training plan with the apprentice. Apprentices must be paid at least the minimum wage and given time off during the working week for training.
Apprenticeship funding is devolved. These rates are for employers in England, and Scotland, Wales and Northern Ireland operate their own systems on different terms.