How Employers Can Access Apprenticeship Funding
There are multiple ways for employers to access funding to support apprenticeships.
Large employers contribute to the Apprenticeship Levy, a government initiative designed to increase the number of high-quality apprenticeships across the UK. If they don’t use all of their levy, these employers can transfer a portion of their unused funds to smaller businesses—helping them overcome cost barriers and invest in developing new talent.
Whether you're a levy-paying employer looking to share your funds, or a smaller business seeking support, we can help you navigate the options available.
For Levy-Paying Employers
If your organisation has an annual payroll of over £3 million, you’re required to pay the Apprenticeship Levy—a 0.5% contribution collected via HMRC through PAYE. These funds are held in your digital apprenticeship account and can be used to cover the cost of apprenticeship training.
If your available levy funds are fully used, you’ll move to the co-investment model, where the government helps cover most of the training costs.
Many large employers find it challenging to spend their full levy allocation. To help maximise the impact of unused funds, we offer the CPCA Levy Matchmaking Service. This allows you to transfer unspent levy to smaller employers in the region, helping them access apprenticeship funding they might not otherwise afford.
By transferring your unused levy, you can:
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Support your supply chain and local economy
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Contribute to regional skills development
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Meet corporate social responsibility goals
Make your levy go further. Get in touch to find out how to support other organisations through the Matchmaking Service.
If your organisation has an annual payroll of less than £3 million, you are not required to pay the Apprenticeship Levy—but you can still benefit from government-funded apprenticeship training.
Fully Funded Apprenticeships for 16–21-Year-Olds
The government will cover 100% of the training costs, up to the funding band maximum, for apprentices aged 16 to 21.
This includes all levels—from Foundation Apprenticeships to Level 7.
Co-Investment for Apprentices Aged 22+
For apprentices aged 22 and over, you’ll contribute just 5% of the total training cost—with the government funding the remaining 95%.
Note: From January 2026, Level 7 apprenticeships will no longer be government-funded.
Additional Funding and Incentives
You may be eligible for extra support depending on your apprentice’s circumstances:
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£1,000 payment for apprentices aged 16–18, or those 19–24 who have:
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Been in care, or
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A Local Authority Education, Health and Care (EHC) Plan
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Small employer exemption:
If you have fewer than 50 employees, and your apprentice is aged 19–24 with an EHC Plan or care experience, the government will fund 100% of training costs—no 5% co-investment needed.
Need support or guidance?
We’re here to help you understand your funding options and find the right apprenticeship programme for your business.
If you're an employer in the Cambridgeshire & Peterborough region, you may be eligible to have 100% of your apprenticeship training costs funded through a Levy Transfer.
We’re working closely with large regional employers who have pledged their unused apprenticeship levy to support smaller businesses across the area. These funds are available now to help you invest in new talent and grow your workforce.
Interested in applying or learning more?
Contact the Apprenticeship Hub today for guidance and support.
📩 Howard Cordingley
[email protected]
Please note: All apprentices must meet the Department for Education’s eligibility criteria as outlined in the latest funding rules. Get in touch for advice on this.
We provide support for donating and receiving employers to use the apprenticeship levy transfer process.
If you would like to find out more about how to donate to the Cambridge and Peterborough SKILLS FUND and help a small employer train an apprentice or if you are an employer and just want to know more about apprenticeships and how the SKILLS FUND levy transfers work, join one of our webinars or email us: [email protected]
You can also read more about levy transfers for donating and receiving employers.