Government Funding for Apprenticeships
Making apprenticeships affordable
One of the biggest advantages of apprenticeships is that they are supported by government funding. This means the cost of training is either fully or heavily subsidised, making apprenticeships one of the most cost-effective ways to develop skills in the workplace.
What funding is available?
For Employers
Levy Employers (payroll over £3 million)
- Pay 0.5% of payroll into the Apprenticeship Levy.
- This money is held in a digital account and must be used for apprenticeship training.
- The government adds a 10% top-up to your account.
- Funds expire after 24 months if not used.
Non-Levy Employers (payroll under £3 million)
- You pay just 5% of the training cost.
- The government funds the remaining 95%.
- If you employ fewer than 50 people and take on an apprentice aged 16–21, the government funds 100% of the training cost.
- How co-investment works: your 5% contribution is paid directly to Impact Academy, usually in monthly instalments over the duration of the apprenticeship. The government pays their 95% contribution automatically to us through the Digital Apprenticeship Service.
For learners
Apprentices do not pay for their training.
Training and assessment costs are covered through employer/governmentfunding.
You earn a salary while you learn, with no student loans or tuition fees.
Conditions around funding
Apprentices must be in paid employment with a contract.
Training must be for a recognised apprenticeship standard approved by theInstitute for Apprenticeships and Technical Education (IfATE).
Apprentices must spend the required off-the-job training hours on learningthat is relevant to the apprenticeship.
Employers must commit to supporting the apprentice throughout theprogramme (mentoring, reviews, signing documentation).
Apprentices must complete English and maths qualifications (FunctionalSkills) if they do not already hold GCSEs at grade 4/C or above.
How to secure apprenticeship funding
Employer Application
The employer applies for the apprenticeship through Impact Academy’s online form.
Set Up a Digital Apprenticeship Service (DAS) Account
- All employers must use the Apprenticeship Service (gov.uk) to reserve or draw down funding.
- Levy employers pay directly from their levy account.
- Non-levy employers reserve funding, and their 5% contribution is set up through co-investment payments.
Eligibility Checks
- Impact Academy carries out checks on the apprentice and employer to confirm eligibility for funding.
- This includes verifying employment, prior qualifications, and programme suitability.
Funding Reservation
- Once eligibility is confirmed, the funding is reserved through the DAS account.
- This guarantees both the government contribution and (for non-levy employers) the co-investment arrangement.
Training Begins
- With funding secured, the apprentice starts their programme with Impact Academy.
Key takeaways
Apprenticeships are 95–100% funded by government support for most employers.
Non-levy employers pay only 5% co-investment, collected directly by Impact Academy in manageable instalments.
Learners never pay for training — costs are covered through employer/government funding.
Employers must use the Digital Apprenticeship Service to secure funding.
Ready to secure your funding? Contact Impact Academy today and we’ll help you set up your Digital Apprenticeship Service account and reserve your apprenticeship funding
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