Apprenticeships

There are 2 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 whether your business pays the Apprenticeship Levy.

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 can reserve government funding for up to 10 apprentices; for each apprentice, 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 to 18) and apprentices who have been in care

If you are an employer or training provider you could get £1,000 for each apprentice you take on if they are aged:

• 16 to 18-years-old
• or 19 to 25-years-old and they have an education, health and care (EHC) plan or have been in the care of their local authority

You can use the incentive funding to help your new apprentice settle in their new workplace. This includes wages. You must meet all other wage costs.

Using the levy

If you don’t spend your Apprenticeship Levy on apprentice training, you could lose it. Any unspent funding may be allocated to non-levy paying employers anywhere in the country.

As an employer, you can use your levy funding to recruit and train local people as apprentices. Or, you can transfer up to 25% of your levy funding to another local employer to keep funding in the area.

More information and contact details

Find more information about government funding for apprenticeships.

If you have any questions about employing apprentices, email localeconomy@southwark.gov.uk.