Funding explained

There are several ways you can access apprenticeship funding as an employer

The Apprenticeship Levy is a form of tax that large employers pay towards funding a greater number of high-quality apprenticeships. Levy-paying employers can transfer a percentage of their unused funding to other businesses, helping them overcome financial barriers to offering apprenticeships.

For levy employers

If you’re an employer with a payroll bill over £3 million each year you’ll be paying an apprenticeship levy of 0.5% via the HMRC PAYE. The cost of apprenticeships will be made out of this account. If you exceed your account limit, you will convert to the co-investment model of 25% for apprentices aged 25+ and apprentices aged 16-24 will be fully funded by the government.

A number of employers find it difficult to spend their full complement of levy funding. To support these organisations, we have introduced the SYMCA Levy Matchmaking Service whereby they transfer unspent funds to other organisations, enabling them to benefit from further apprenticeship funding. This not only supports corporate social responsibility objectives but also supports skills development within the local supply chain.

For non-levy employers

If you do not have an annual wage bill of more than £3m a year, you won't have to pay the Apprenticeship Levy.

• For apprentices aged 16 - 24, the government will fund all of the apprenticeship training costs, up to the funding band maximum, for apprentices who are aged between 16 and 24 years old when they start their apprenticeship training. This includes Foundation apprenticeships and Level 7 apprenticeships.

• For apprentices aged 25+, you will share the cost of apprenticeship training with the government. You’ll need to contribute 5% towards the cost of the apprenticeship programme with the remaining 95% paid by the government. This is called ‘co-investment’. From January 2026, there will be no funding available for those wishing to complete a Level 7 apprenticeship.

Levy Transfers

Employers can apply for a Levy Transfer where you could benefit from 100% funding of the training costs of your apprenticeship. We are working with a range of large employers in the region who have pledged funds to be spent by other regional employers to support their apprenticeships.

How does a levy transfer work?

1. Receiving employers complete a short Skills Diagnostic

2. The Apprenticeship Hub match the request with one of the levy pledgers

3. The Apprenticeship Hub notifies you of the successful match and details the next steps

All apprentices must meet with DfE’s eligibility rules as defined in the latest Funding Rules - for further guidance please contact the South Yorkshire Apprenticeship Hub on apprenticeships@southyorkshire-ca.gov.uk