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.  

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.  

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  

Incentive grant payment for employers (England only) 


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

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

Employers can claim the incentive payment for apprentices hired between 1 October 2021 and 31 January 2022. 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.

The application window opens on 11 January 2022 and closes on 15 May 2022.

Official Government guidance can be found here.

Click here to more information on the eligibility criteria, how to claim the grant, and guidance videos.

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 2021-22

Registering for ESFA Apprenticeship funding as an Employer

FAQs

View our handy FAQ’s below

FAQ’s

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