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Who pays for an apprenticeship?

You don't pay for your apprenticeship training. How the apprenticeship levy works, what smaller employers pay, and why that matters when you're looking for an apprenticeship in England.

  • Applies to England
  • Reviewed
  • Reading time 2 min

The short answer

You don't. Apprentices pay no tuition fees. Big employers with a pay bill over £3 million pay an apprenticeship levy of 0.5% and use it for training. Smaller employers pay 5% of training costs and the government pays the rest, and training for 16 to 21 year olds is fully funded for them.

Key figures

Apprenticeship levy rate on an employer's annual pay bill
0.5%
Source: GOV.UK
Annual pay bill above which an employer pays the levy
£3 million
Source: GOV.UK
Share of training and assessment costs paid by employers that don't pay the levy (for older apprentices)
5%
Source: Apprenticeships.gov.uk
Tuition fees paid by the apprentice
£0
Source: Apprenticeships.gov.uk

Short answer: not you. Apprentices don’t pay tuition fees, and you earn a wage while you train. But knowing how employers pay for apprenticeships can help you understand why some employers take on hundreds of apprentices and others take on one.

The apprenticeship levy

Employers in England with an annual pay bill of more than £3 million pay the apprenticeship levy:

  • It’s 0.5% of their annual pay bill.
  • They get a £15,000 allowance each year, which reduces what they pay.
  • They can use the money to pay for apprenticeship training and assessment.

That’s why big employers like Lloyds Banking Group, with over a thousand apprentices, run such large programmes. They’ve already paid in, so they want to use it.

Employers that don’t pay the levy

Smaller employers (and levy payers who’ve run out of levy funds) pay:

Apprentice Who pays the training costs
Aged 16 to 21 The government pays it all, up to the funding limit
Aged 22 to 24 with an EHC plan or care experience The government pays it all, up to the funding limit
Others The employer pays 5%, the government pays the rest

Big employers can also give up to 50% of their unspent levy to other businesses, so a small employer can sometimes get its training fully paid that way.

What employers pay you

Training funding doesn’t cover your wages. Your employer pays your salary for your working hours and your training time, and must pay at least the apprentice minimum wage.

What this means for you

  • There’s no student debt. Even a degree apprenticeship comes with no tuition fees.
  • Your age can help. Training for 16 to 21 year olds is fully funded for smaller employers, which can make you an easier hire.
  • If you’ve been in care, there’s extra money for you too. See our guide to the care leavers’ bursary.

Summary

  • Apprentices don't pay tuition fees, even on degree apprenticeships.
  • Employers with a pay bill over £3 million pay the apprenticeship levy, 0.5% of their pay bill, and use it to fund training.
  • Employers that don't pay the levy pay 5% of training costs, with the government paying the rest.
  • For those smaller employers, training for apprentices aged 16 to 21 is fully funded.

Questions you might have

Do you have to pay for an apprenticeship?

No. Apprentices don't pay tuition fees. Your employer and the government pay for the training, and you earn a wage.

What is the apprenticeship levy?

A charge of 0.5% of an employer's annual pay bill, paid by employers whose pay bill is over £3 million. They get a £15,000 allowance each year and can use the money to pay for apprenticeship training.

Do small businesses pay for apprenticeships?

Employers that don't pay the levy pay 5% of the training and assessment costs, and the government pays the rest up to a funding limit. For apprentices aged 16 to 21, the government fully funds the training.

Do degree apprentices pay tuition fees?

No. Degree apprentices don't pay tuition fees, which is one of the big differences from university. Our apprenticeship vs university guide compares the two.

Why does funding matter to me as an apprentice?

It explains why big employers often run large apprenticeship programmes: they've already paid the levy. It's also why being 16 to 21 can make you cheaper for a small employer to train.

Sources and review

Last reviewed . Details can change after this date, so check the official source before you rely on them.

  1. Pay Apprenticeship Levy GOV.UK · accessed
  2. Funding an apprenticeship for non levy employers Apprenticeships.gov.uk (Department for Education) · accessed
  3. See what you'll be paid and your future salary Apprenticeships.gov.uk (Department for Education) · accessed

Read about how we research and review content.

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