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Apprenticeship Funding for Non-Levy Employers: What You Pay and What's Funded

Aug 14
2 min read
Two colleagues in a bright classroom review a red Workpays notebook, smiling and pointing at notes; another student works behind them.

Thinking about hiring an apprentice but unsure what it will cost your business? You're not alone.


Apprenticeship funding can feel confusing, especially with rule changes in 2026. But for most small and medium employers, the news is good. Training is cheaper than ever, and in many cases, completely free.


Here's what you actually need to know.


What Counts as a Non-Levy Employer?


If your annual payroll is under £3 million, you're a non-levy employer. This applies to most SMEs across the East Midlands and beyond.


You don't pay into the Apprenticeship Levy. Instead, you access government funding through a co-investment model, sharing the cost of training with the state.


How Much Does Apprenticeship Funding Cost?


This is where recent changes make a real difference to your bottom line.


Apprentices aged 16 to 24


From 1st August 2026, the government fully funds apprenticeship training and assessment for this age group. Up to the funding band maximum, your contribution is £0.


That's a significant shift from the old 5% co-investment model, and it's great news for employers building a pipeline of young talent.


Apprentices aged 25 and over


The government contributes 95% of training costs. You pay the remaining 5% directly to your training provider.


Employers with fewer than 50 staff may qualify for full funding on additional groups, including apprentices with an Education, Health and Care Plan.


What Does Apprenticeship Funding Actually Cover?


It's worth being clear on the boundaries. Funding covers:

  • Training delivery

  • End-point assessment

  • Coordination with your training provider


It does not cover:

  • The apprentice's wage

  • Recruitment costs

  • Travel or overheads


Apprenticeship funding removes the training cost barrier. It doesn't replace your role as an employer investing in someone's future.

Extra Support Worth Knowing About


Funding isn't the only financial upside. Depending on who you hire, you could also access:


  • £1,000 hiring payments for apprentices aged 16 to 18, or 19 to 24 with an EHC plan or care experience

  • No employer National Insurance contributions for apprentices under 25 earning below the Upper Secondary Threshold

  • A new £2,000 non-levy hiring incentive from October 2026 for eligible young apprentice recruits


Every pound saved on cost is a pound you can reinvest in your team.


How Workpays Makes Funding Simple


Apprenticeship funding rules change often. You shouldn't need to become an expert to benefit from them.


At Workpays, we handle the funding conversation for you. We'll confirm your eligibility, set up your apprenticeship service account, and make sure you never overpay for training.


Explore our full range of apprenticeship programmes for employers to see what's possible for your business.


Ready to Find Out What You'd Actually Pay?


Every business is different. The fastest way to know your exact costs is to ask us directly.


Request your free employer funding guide and we'll walk you through your options, no jargon, no obligation.


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