Your Guide to Apprenticeship Funding

Understand how government funding, the Apprenticeship Levy, co-investment, and qualification support can unlock powerful opportunities for your workforce.

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What Is Apprenticeship Funding?

Apprenticeship funding refers to the financial support made available by the government and other bodies to subsidise training and development. This money is available to both Levy-paying and non-Levy employers, with multiple routes to funding.

Apprenticeship Funding Bands Explained

Apprenticeships are each assigned a funding band, which sets the maximum amount of funding available for training and assessment. The government updates these bands to stay aligned with market conditions and training costs. Levy employers use their digital account to draw down funding up to the band cap. Non-Levy employers access co-investment, with 95% funded by the government.

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Embedded & Additional Qualifications

Some apprenticeships include embedded qualifications (such as diplomas or certificates) which are required for completion. These are fully funded within the assigned band. Employers can also opt to include additional qualifications (e.g. sector-specific or vendor credentials), though these may fall outside the band and could involve extra cost depending on your training provider agreement.

Understanding the Apprenticeship Levy, 

Co-Investment & Incentives
Apprenticeship Levy (For Large Employers)

If your organisation has a wage bill over £3 million, you are required to pay 0.5% of your payroll into the Apprenticeship Levy. However, you can transfer up to 50% of your annual funds to smaller employers in your supply chain or industry to support their apprenticeship needs. This is called Levy Gifting.

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Co-Investment (For Smaller Employers)
Co-Investment (For Smaller Employers)

If your wage bill is under £3 million, you won’t pay into the Levy, but you can still access significant government support through co-investment. This is where the government pays 95% of training and assessment costs (up to the funding band maximum) and your business pays only 5%, making apprenticeships highly accessible and affordable.

Incentive Payments for Hiring Apprentices

To further support businesses hiring apprentices, the government offers cash incentives — particularly when hiring apprentices aged 16–18 and apprentices under the age of 25 with an Education, Health and Care Plan (EHCP). These payments are made via your Digital Apprenticeship Service (DAS) & Fund Management account and can be used flexibly to support apprenticeship-related costs — from wages to equipment. However, these change from time to time depending on government priorities or economic factors so enquire with the GLP Training team to find out what’s currently available.

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Other Considerations
for Employers

Digital Apprenticeship Service (DAS) & Fund Management

For Levy-paying employers, all contributions are stored in a Digital Apprenticeship Service (DAS) account. Here you can select your training provider, approve apprentice training, track usage and expiry of funds, and transfer funds to other employers through Levy gifting. Proper management ensures you never miss a funding opportunity.

Levy funds expire 24 months after they’re added to your digital account. Unused funds are returned to the Treasury. To maximise your ROI, plan your training calendar proactively and stay aware of any unused balances.

Extra government support is available for apprentices with additional needs, such as learning difficulties, disabilities, or personal challenges. The team at GLP Training can help access this additional funding to ensure learners thrive and complete their programme successfully.

Working with a trusted, experienced training provider is key. They’ll ensure your apprentices receive high-quality, compliant training, help map learning to business goals, maximise the use of your funding, and provide guidance on qualification selection and embedded learning. A good partnership, like GLP Training, can significantly improve apprenticeship completion rates and long-term outcomes.

Other Information