Funding Explained
Apprenticeships are government-funded. That means the cost of the training is covered, in full or in part, by the government, not your business.
Here’s how it works in practice...
If your business doesn’t pay the apprenticeship levy
Most small and medium businesses don’t pay the levy. If your annual payroll is under £3 million, you almost certainly fall into this category.
For non-levy employers, the government pays the majority of the training costs directly to Vocate. Your business contributes a smaller share — the co-investment amount — toward the training. You pay your apprentice’s wages as you would any other employee.
The co-investment rate is changing. From August 2026, the employer contribution is increasing. If you’re thinking about taking on an apprentice, it’s worth starting the conversation now while the current rate still applies.
If your business pays the apprenticeship levy
Larger businesses with a payroll above £3 million pay into the apprenticeship levy each month via PAYE. That money sits in a digital account and can only be spent on apprenticeship training. If you pay the levy, your Vocate training costs come directly from your levy account.
Levy funds expire. They need to be used within a set window, which is reducing from 24 to 12 months from August 2026. If you have unspent levy, now is a good time to use it.
What you always pay
You don't pay recruitment fees. You don't pay for the End Point Assessment. Those are covered.
A note on the funding rules
Want to know what it would cost your business specifically?
Every employer’s situation is slightly different. Get in touch and we’ll give you a straight answer.
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