Apprenticeship funding
Whether your business pays into the levy or not, and whether you want to develop new talent or upskill your existing workforce, we’re here to guide you.
Apprenticeship funding for employers
What is the Growth and Skills Levy?
Managed by the government body Skills England, the Growth and Skills Levy funds apprenticeship training to help businesses across the country develop the workforce skills they need. Formerly known as the Apprenticeship Levy, it is a UK tax on employers with an annual pay bill over £3 million, charged at 0.5%.
From 2026, the Growth and Skills Levy gives employers greater flexibility in how apprenticeship funding is used, including access to new types of training.
What types of training can I fund?
You can use the Growth and Skills Levy to pay for:
Full apprenticeships: funding is available for all Level 2 to Level 6 apprenticeships, with funding available for Level 7 apprenticeships where the learner is aged 16-21 (or under 25 where eligible*). Please note that funding eligibility for Level 7 apprenticeships has changed as of January 2026
Apprenticeship units: short training units lasting between approximately one and 16 weeks, available to existing employees aged 19 and over
Foundation apprenticeships: entry-level apprenticeships designed for learners aged 16-21 (or under 25 where eligible*) and at the start of their career
New to apprenticeship units?
Learn more about shorter, flexible training courses to upskill your existing employees fast.How much funding do I receive?
Additional incentives for hiring a young person
All employers can:
Receive an additional £1,000 for hiring an apprentice aged 16-18 (or under 25 where eligible*)
Receive up to an additional £2,000 for hiring an apprentice onto a foundation apprenticeship (aged 16-21, or under 25 where eligible*)
Receive a £3,000 youth jobs grant when hiring a young person aged 18-24, either in an apprenticeship or non-apprenticeship role, who has been unemployed and on Universal Credit for at least six months
From 1 August 2026, benefit from zero secondary Class 1 National Insurance contributions for apprentices under 25. This exemption ends on the apprentice’s 25th birthday, regardless of the duration remaining on their apprenticeship
Non-levy paying employers can:
From 1 October 2026, receive an additional £2,000 cash payment for apprentices aged 16-24, either hired onto an apprenticeship or starting an apprenticeship on or after 1 October 2026
Did you know?
Financial incentives can be stacked if you meet multiple criteria.For example, if you are a non-levy paying employer and you hire an apprentice aged 16 onto a foundation apprenticeship on 1 October 2026, you could receive:
£1,000 for hiring an apprentice aged 16-18
£2,000 for hiring an eligible apprentice onto a foundation apprenticeship
£2,000 for being a non‑levy paying employer hiring an eligible apprentice
This means you could receive up to £5,000 in total incentives for a single apprentice.
Get funding advice for your business
Explore how funding can support your early‑career talent pipeline, including apprenticeships for new starters and entry‑level roles.
Understand how to use funding to upskill and reskill your existing workforce, to close skills gaps quickly in key areas.
Get clear guidance on the funding routes available for different departments, roles and workforce development needs.
Receive tailored advice to help you plan, budget and maximise the value of your apprenticeship investment.
Frequently asked questions
If you can’t find the answer to your question, our advisers will be happy to help.
Yes, with the Growth and Skills Levy, you can get government funding for apprenticeship training, no matter the size of your business. The amount you receive depends on whether you are a levy or non-levy paying employer, how you want to use apprenticeship training within your business, and the age of the apprentice.
*Eligibility: Apprentices under the age of 25 and either a care leaver or have an Education, Health and Care Plan (EHCP) at the start of their apprenticeship.