With funding available from the government, degree apprenticeships are a cost-effective way to attract new talent and upskill your workforce.
The amount of funding your business receives depends on whether you pay the apprenticeship levy.
The apprenticeship levy is a tax paid by businesses and designed to allow employers to encourage and invest in apprentices. The money is deposited into a fund, which is used to help pay for apprenticeship training.
If you pay the apprenticeship levy
You are required to pay the apprenticeship levy if you’re an employer with a yearly bill of more than £3 millon.
Employers who pay the levy will receive 100% funding for apprenticeship training and End-point Assessment (EPA).
If you don’t pay the apprenticeship levy
If your business earns less than £3 million per year, you will still be able to receive up to 95% of apprenticeship funding. The remaining 5% will be used to train and assess your apprentice.
You must:
- agree a payment schedule with the training provider, and
- pay them directly for the training
To learn more about funding and manage future payments, join the government’s apprenticeship service.
Hire a young apprentice
As well as the apprenticeship levy, the government also offers an incentive payment of £1,000 if you take on an apprentice who is either:
- aged 16 to 18 years old, or
- aged 19 to 25 years old with an education, health and care plan or has been in local authority care
You can spend the payment on any costs associated with supporting your apprentice in the workplace. This could include your apprentice’s travel or their salary.
Visit the goverment guidance page to find out if your business is eligible for incentive payments.
Extra funding for small businesses
If you're a business with less than 50 employees, you will receive 100% funding for apprentices under 19 when they begin their training.
