Employers that do not pay the apprenticeship levy

Smaller employers do not pay the apprenticeship levy.

The government supports the training of apprentices by funding their learning and skills development, and their assessment. 

Smaller employers - who do not pay the apprenticeship levy - pay 5% towards the cost of training and assessing an apprentice. The government will pay the rest up to the funding band maximum.

You’ll pay the training provider directly and agree on a payment schedule.

If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged:

  • 16 to 18
  • 19 to 24 with an education, health and care plan (EHCP) provided by their local council
  • 19 to 24 care leavers who have been in the care of their local council