The Apprenticeship Levy: For Larger Employers
If your organisation has an annual payroll over £3 million, you’ll be paying the Apprenticeship Levy—a 0.5% tax collected through HMRC PAYE. These funds go into a digital account and are used to cover the cost of apprenticeship training.
If your levy account doesn’t cover the full cost of your apprenticeships, you’ll move to the co-investment model, where you pay just 5% of the training cost and the government pays 95%.
Levy Transfers: Share Unused Funds
Many levy-paying employers don’t use all their funds. Through our CPCA Levy Matchmaking Service, you can transfer unspent levy to smaller businesses, charities, or not-for-profits across the region. This helps:
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Support skills development in the local workforce
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Strengthen your supply chain
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Meet corporate social responsibility goals
Non-Levy Employers: Small and Medium-Sized Businesses
If your organisation’s payroll is under £3 million, you don’t pay the levy—but you can still benefit from funded apprenticeship training.
Funding Breakdown
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Aged 16–21:
The government pays 100% of the training costs (up to the funding band maximum), including for Foundation to Level 7 apprenticeships. -
Aged 22+:
You’ll pay just 5% of the training cost—the government pays the other 95%. (This is known as co-investment.)
Note: From January 2026, funding will no longer be available for Level 7 apprenticeships.
Extra Support for Employers
You may be eligible for additional grants depending on the apprentice’s circumstances:
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£1,000 payment if your apprentice is:
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Aged 16–18
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Aged 19–24 and has been in care or has an Education, Health and Care (EHC) Plan
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Age Grants from CPCA:
In addition to government support, we offer grants between £1,000–£2,000 when you recruit a young person aged 16–18 (subject to conditions). -
Small Employer Exemption:
If you have fewer than 50 employees, and your apprentice is 19–24 with care experience or an EHC Plan, the government covers 100% of training costs—including Foundation Apprenticeships.
Funded Internships: Try Before You Hire
Not ready to commit to an apprenticeship yet? Consider offering an internship.
Through UK Shared Prosperity Fund (UKSPF) support, we offer 100% funded internships to help you test the waters with talented individuals looking to re-enter work or training.
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Duration: 6 weeks
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Hours: 12 to 38 hours per week
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Pay: Must meet National Living Wage (21+) or National Minimum Wage (under 21)
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Cost to employer: Fully funded
Internships are a fantastic way to see if an individual is a good fit before moving them into a longer-term apprenticeship role.
Find out more