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How much do employers pay for apprenticeship training?

98% of businesses pay a minimum of just 5% of the apprenticeship training costs The government pays the remaining 95%. They will pay the training provider directly and agree on a payment schedule.

If the business employs fewer than 50 employees, the government will pay 100% of 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 provided by their local authority or has been in the care of their local authority

The remaining 2% of businesses (those with an annual wage bill over £3 million) pay into an Apprenticeship Levy. The government tops up the Levy accounts by 10%. These funds can then be used to pay for apprenticeship training. If they do not have enough funds, they just pay 5% of the outstanding balance and the government will pay the rest. This is up to the funding band maximum allocated to each specific apprenticeship.

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