Employ an apprentice

Funding for apprenticeships

There are two direct costs associated with employing apprentices: their wages and the cost of their training. The government provides funding to cover all or part of the training costs, depending on which criteria you and your apprentices meet, but you must cover the wage costs yourself.

If your business pays the Apprenticeship Levy:

  • you can use the levy funds to cover most of the costs of training apprentices, who may be either new or existing staff members
  • the government can provide extra funding if your levy funds run out

If your business is not a levy payer:

  • you’ll pay 5% of the cost of training and the government will pay the remaining 95%
  • you may be able to get extra funding for younger apprentices (aged 16-18) and apprentices who have been in care

Using the levy

If you don’t spend your Apprenticeship Levy funds on apprentice training, they could be lost, not only to your business but also from the local area. Any unspent funding may be allocated to non-levy paying employers anywhere in the country.

As an employer you can support your local economy by using your levy funding to recruit and train local people as apprentices, or you can opt to transfer up to 25% of your levy funding to another local employer to keep funding in the area. Read more about this here.

More information and contact details

You can find more information about government funding for apprenticeships here.

If you have any questions regarding employing apprentices, contact us at localeconomy@southwark.gov.uk or phone: 020 7525 7335. 

Page last updated: 12 August 2019