How apprenticeship funding works

As an employer, you get to choose what apprenticeship training you want for your business and team members (and as an apprenticeship training provider, Intequal can help if you also need advice on the right programme!).

How you fund those apprenticeships depends on the size of your business and your total number of employees.

You may have heard about the apprenticeship levy. However, if you’re an SME with an annual wage bill under £3m, you won't be paying into a levy. Instead, you can get help from the government to fund your company’s apprenticeship training.

The government’s support for SME apprenticeship funding is called co-investment. To put it simply, the government will pay 95% of apprenticeship costs – meaning you only contribute 5%. This covers the cost of apprenticeship training and assessment.

There are also additional government incentives to support your diverse talent pipeline. If you have less than 50 employees and take on an apprentice aged 16-18, or an apprentice aged 19-24 who’s previously been in care or who has an Education, Health and Care plan, the government will pay 100% of the apprenticeship training cost – meaning you can train and develop your tech talent for free.

It’s no secret that businesses are facing a digital skills gap. Co-investing in digital and IT apprenticeships is a cost effective way for SMEs to tackle digital skills shortages and attract, upskill and retain tech talent.

There’re several benefits for tech SMEs who fund apprenticeships through co-investment - such as recruiting new talent, building a talent pipeline and receiving industry-leading technical training. And better yet, working with an experienced apprenticeship provider reduces the time you need to manage recruitment and training - for only 5% of the apprenticeship cost. Ready to chat about apprenticeships and funding for your business?

If you’re a large employer with an annual staff wage bill of £3 million or more, you’ll be paying into an apprenticeship levy. Your levy is calculated at 0.5% of your wage bill and you receive an annual government allowance of £15,000. Your levy can be used for apprenticeship training and assessment in England and is accessible through a digital apprenticeship service account.

You don’t have to have a large levy to pay for an apprenticeship. If the cost of the programme is more than your what’s in your apprenticeship service account, the government will provide up to 95% of the remaining costs.

As a specialist digital and IT apprenticeship provider, Intequal can help you effectively use your apprenticeship levy to upskill your tech teams. Our services such as funding strategy, apprentice recruitment and talent pipeline planning are included in the cost of our apprenticeships. It’s all part of our commitment to helping you build the digital capabilities you need to stay ahead in the fast-moving tech sector.

Every employer, regardless of size, can enjoy these government incentives:

These government incentive payments can be spent on any costs associated with supporting your apprentice at work.