Apprentices: Costs

(asked on 10th February 2026) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how many and what proportion of apprentices aged (a) 21 or under and (b) 24 or under were subject to a 100% reduction in apprenticeship training cost in (i) 2023-4 (ii) 2024-5 financial year.


Answered by
Andrew Western Portrait
Andrew Western
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 25th February 2026

The apprenticeship funding rules for the 2023/24 and 2024/25 academic years, which include information on employer co-investment, are published here Apprenticeship funding rules - GOV.UK.

Since April 2024, the government has fully funded apprenticeship training costs up to the funding band maximum for non-levy paying employers for apprentices aged 16-21 and apprentices aged 22-24 who have an Education, Health and Care Plan (EHCP) or have been, or are, in local authority care. For all other apprentices, employers that do not pay the levy are required to co-invest 5% towards apprentice training costs, unless they are in receipt of a levy transfer which covers that cost.

From August 2026, the government will fully fund apprenticeship training for non-levy paying employers for all eligible people aged 16-24. For all other apprentices, employers that do not pay the levy will be required to co-invest 5% towards apprentice training costs, unless they are in receipt of a levy transfer which covers that cost.

The maximum that non-levy payers are required to co-invest in apprentices’ training costs is 5%.

The government pays £1,000 to both employers and providers for apprentices aged 16-18, and for apprentices aged 19-24 who have an EHCP or have been, or are, in local authority care. On top of this, employers will receive additional payments of up to £2,000 for eligible foundation apprenticeships. Additionally, employers are not required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 (when the employee’s wage is below £50,270 a year).

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