What is the Apprenticeship Levy?
If your business has an annual wage bill over £3 million, you’re one of the roughly 2% of UK employers who pay the Apprenticeship Levy.
- Charged at 0.5% of your annual payroll
- Collected automatically through PAYE
- Funds are ring-fenced for apprenticeship training only
To use your levy funds, you’ll need a Digital Apprenticeship Service (DAS) account.
Levy-paying employers: what’s changing
If you’re already paying into the levy, here’s what the latest apprenticeship funding rule changes mean for you:
- You’ll continue to use your DAS account to fund apprenticeship training with Shoots Training.
- From 1 August 2026, the co-investment rate is rising from 5% to 25% for employers whose levy pot runs low, meaning you’ll cover a larger share of training costs, with the government funding the remaining 75%.*
- If a course costs more than the government’s maximum funding band, you’ll need to cover the difference.
*100% funding applies to levy-paying employers with apprentices aged 24 or under with an exhausted levy.
Non-levy employers: funding is still available
Most UK employers don’t pay the levy, and the good news is, funding is still available to help you take on an apprentice, even with the recent apprenticeship funding rule changes.
- Apprentices aged 24 or under: the government currently covers 100% of training costs.
- Apprentices aged 25 or over: you pay just 5%, with the government covering the remaining 95%.
To access this, simply set up a DAS account and reserve your funding before the apprenticeship starts. Reach out to our team and we’ll guide you through the whole process.
Government Incentive for hiring young apprentices
Taking on a younger apprentice comes with an extra boost. If your apprentice is under 18 when they start, you’ll receive a £1,000 incentive payment:
- £500 after 3 months
- £500 on completion
There are no restrictions on how you spend it, it’s yours to use however suits your team best.
How Shoots Training can help you navigate these changes
Funding rules change, but our support doesn’t. Shoots Training helps employers understand apprenticeship funding rule changes, choose the right training, and build a workforce that lasts. Explore our full range of apprenticeships to get started.
