Employing an apprentice is more affordable than you think.
Navigating Funding: We’ll Guide You Every Step of the Way
Accessing Government funding is a major advantage for your business, but the digital setup can feel daunting. At Derwent Training, we make the process seamless.
All UK businesses can access government funding to help cover the costs of training and assessing an apprentice. To access this, your business must register on the Apprenticeship Service.
Why it matters: Setting up this account is a legal requirement to unlock funding. Once it’s live, we work alongside you to ensure your account is compliant and your funding is secure.
Getting Started in 3 Steps:
Register: You create your account using your PAYE information, however we guide you through this process.
Collaborate: Add Derwent Training as your chosen provider. You can then grant us permission to handle the “heavy lifting” of data entry.
Approve: You remain in the driver’s seat. We add the details, but you give the final digital “green light” for all funding and recruitment.
Not sure where to start? Our team is just a phone call away to walk you through the setup.
What apprentice funding is currently available?
- 100% of training for 16-21 year old apprentices is funded by the Government
- You pay 5% of the cost of training apprentices aged 22 years old and over
- £1,000 of Government incentives paid to employers for each employer aged 16-18
- You do not pay employer NI contribution for apprentices under 25 years old, earning less than £967 per week
- 95% of training for all apprentices funded by the Government
- You pay 5% of the cost of training all apprentices
- £1,000 of Government incentive paid to employers for each apprentice aged 16-18
- You do not pay employer NI contribution for apprentices under 25 years old, earning less than £967 per week
- You pay 0.5% of your annual wage bill into your Apprenticeship Levy account. This money can only be spent on apprenticeship training.
- £1,000 of Government incentive paid to employers for each apprentice aged 16-18
- You have 24 months to spend your Levy funds, starting with the oldest funds
- You do not pay employer NI contribution for apprentices under 25 years old, earning less than £967 per week
Government incentive payments
Regardless of company size and turnover, you receive a £1,000 incentive for recruiting an apprentice who is 16-18 year old, or is 19-25 year old with an Education, Health and Care (EHC) plan, or has been in the care of their local authority.
You can spend the incentive on any costs associated with training an apprentice in the workplace. For example, on uniform, your apprentices travel or their salary.
The incentive payments are paid in two instalments. The first payment of £500 will be made after 90 days of the apprenticeship training start date, and the final payment of £500 will be paid after 365 days of the apprenticeship start date.
Changes for 2026-27
From the 2026 to 2027 academic year
- Apprentices under 25 years old are 100% funded at SMEs.
- SMEs will get an incentive of up to £2,000 when recruiting new apprentices aged 16 to 24 years old.
- Levy funds paid in from 1st August 2026 will have a lifespan of 12 months (down from 24 months).
- If your Levy funds run out, your co-investment cost will increase 5% to 25%
Resit costs
Employers will pay for any online unit exam resits during the apprenticeship.
The initial cost of the End-Point Assessment is included in the overall apprenticeship delivery cost.
Employers are responsible for paying for any End-Point Assessment resits.