Incentives, Funding & Wages

Employer Incentives and Funding

£1,000 Employer Incentive

If you recruit an apprentice aged 16 to 18, you may be eligible for a £1,000 employer incentive payment. This is paid in two instalments of £500 during the apprenticeship.

Apprenticeship Levy-Paying Employers

If your organisation pays the Apprenticeship Levy (this is separate from the CITB Levy), the full cost of apprenticeship training will usually be paid from your apprenticeship levy account.

If there are insufficient funds in your levy account to cover the monthly training costs, you will be required to pay the remaining co-investment contribution.

Non-Levy Employers

If your organisation does not pay the Apprenticeship Levy:

Apprentices aged 16 to 21 – the Government will fully fund the apprenticeship training, so there is no training cost to your business.
Apprentices aged 22 and over – your business will contribute 5% of the training cost, with the Government funding the remaining 95%.

Additional Government Support

The Government will fully fund apprenticeship training for learners aged 22 to 24 who either:

have an Education, Health and Care Plan (EHCP), or
have previously been in the care of their local authority

Your Responsibilities as an Employer

As an apprentice's employer, you will need to:

Provide a supportive working environment where the apprentice is supervised and mentored by experienced members of staff
Ensure the apprentice develops the knowledge, skills and behaviours required by their chosen apprenticeship standard
Allow the apprentice paid time during working hours to attend college, complete training and undertake any mandatory off-the-job learning
Provide a contract of employment for the full duration of the apprenticeship
Pay the apprentice's wages in line with current National Minimum Wage regulations
Provide at least 20 days' paid annual leave, plus statutory holidays where applicable
Complete and sign the required apprenticeship documentation, including the Apprenticeship Agreement, Training Plan and Apprenticeship Training Services Agreement

Apprentice Pay

Apprentices must be paid at least the Apprenticeship National Minimum Wage, which is currently £8.00 per hour.

The apprenticeship rate applies to apprentices who are:

under the age of 19, or
aged 19 or over and in the first year of their apprenticeship.

Apprentices aged 19 and over who have completed the first year of their apprenticeship must be paid at least the National Minimum Wage or National Living Wage for their age group.

For the latest pay rates and further information, please visit the Government's National Minimum Wage guidance.

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