Apprenticeship funding guidance
Apprentice employers must have a DAS account
Apprenticeship Funding Guidance for Employers
Navigating apprenticeship funding can feel complex—but with the right guidance, it becomes a powerful tool for growing your organisation and developing future-ready talent. Whether you’re a levy-paying employer or a small business accessing co-investment, understanding how apprenticeship funding works is key to maximising your return on investment.
What Is Apprenticeship Funding?
Levy vs Non-Levy Employers
There are two main types of funding routes:
Levy-paying employers: Organisations with an annual wage bill over £3 million contribute 0.5% of their payroll into a dedicated apprenticeship fund via HMRC. These funds are accessed through DAS and can be used to pay for approved apprenticeship training.
Non-levy employers: Smaller organisations benefit from co-investment, where the government typically funds up to 95% of the training costs. In some cases—such as hiring younger apprentices or having fewer than 50 employees—100% funding may be available.
Both routes offer substantial support, making apprenticeships a cost-effective way to build skills and capacity.
What Does Funding Cover?
Apprenticeship funding can be used to cover:
- Initial assessments and onboarding
- Training delivery and learning resources
- Employer support and mentoring
- Exam fees and end-point assessment
- Use of apprenticeship tracking systems
Funding must be used in line with the approved apprenticeship standard and recorded accurately.
Apprentice Wages
While training costs may be covered by government funding, employers are responsible for paying the apprentice’s wages. These must meet the National Minimum Wage requirements for apprentices, based on age and stage of training. Many organisations choose to pay above the minimum to attract motivated candidates and reflect the value apprentices bring to the team.
For wage guidance, visit the GOV.UK page on apprentice pay.
Additional Payments and Incentives
In certain cases, employers may be eligible for additional incentive payments. These can include support for hiring apprentices aged 16–18, care leavers, or individuals with an Education, Health and Care Plan (EHCP). Incentives are designed to encourage inclusive hiring and help offset wage or onboarding costs. Eligibility and payment amounts vary, so it’s worth checking the latest guidance or speaking with your training provider.
No Recruitment Fees
At NowSkills, we believe in making apprenticeships accessible and cost-effective. That’s why we do not charge recruitment fees to employers. Our goal is to help you find the right apprentice without adding unnecessary costs—so you can focus on training, development, and long-term success.
Why Apprenticeship Funding Is a Smart Investment
Apprenticeships offer a strong return on investment. With most training costs covered by government support, employers can focus on developing talent that fits their culture and operational needs. Apprentices often become loyal, skilled employees who reduce recruitment costs and contribute to long-term growth.
Funding also supports workforce planning, helping organisations upskill existing staff or bring in new talent in areas like digital, technical, and operational roles.