In 2017 the Education & Skills Funding Agency made changes to the way that apprenticeship funding works for employers, so we’ve put together a helpful guide on the difference between levy paying and co-Investment apprenticeships.

Levy Paying Apprenticeships

If your pay bill is over £3 million, the following will apply to your apprenticeship funding:

  • 0.5% of your payroll is contributed to HMRC
  • A £15k allowance is returned per annum
  • 10% is returned per £1 over the initial £3 million
  • You will have a 2 year time limit to spend the allowance

Co-Investments Apprenticeships

If your pay bill is less than £3 million, the following will apply to your apprenticeship funding:

  • 100% apprenticeship funding for ages 16-18*
  • 95% apprenticeship funding for ages 19+
  • 5% funding contribution from the employer, with payment plans available*

*depending on the size of your business


Regardless of whether you are a levy paying or co-investment apprenticeship provider, the below will apply:

  • Contracted hours can be flexible
  • £3.90 national minimum wage for apprentices*
  • £1,000.00 grant is provided per apprentice aged 16-18 (paid in two instalments)
  • No NIC payments for apprentices aged under 25

*correct as of December 2019

(‘Pay bill’ is defined as total employee earnings subject to class 1 secondary National Insurance contributions.)

For more information on apprenticeship funding, get in touch with our friendly, experienced Employer Services team.



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