Apprenticeships are largely funded by the government – individuals cannot pay for their apprenticeships. Businesses pay the Apprenticeship Levy of 0.05% on all pay over £3M per year. This goes into each businesses’ Digital Account where the government adds 10%. This money is then available to spend on apprenticeships. Money that has lain in the account for more than two years expires and returns to the government.

Organisations with less than £3M in salaries each year pay only 5% of the total cost of the apprenticeship, with the government directly paying the rest.

Organisations with fewer than 50 staff don’t pay anything towards apprenticeships if the apprentice is 16-18 years old or 19-24 years old and has been in care or has an EHC plan.