Funding

Funding for training,
made simple.

Whether you're a levy-paying employer with a levy account to spend, or a small business looking to grow your team for the first time, there’s a route into apprenticeships for you, and TLC will walk you through every line of it. We handle the paperwork.

Two colleagues reviewing apprenticeship funding details on a tablet together
  • 100% Government-funded training for apprentices aged 16–24
  • 0% Funded from your levy account if you're a levy payer
  • £3m+ Pay bill threshold for levy contributions
  • 12mo Before unspent levy funds expire

Which route is yours?

Two funding routes, one delivery partner.

Your funding route depends on one number: your annual pay bill. If it's over £3 million, you pay the Growth and Skills Levy (the renamed Apprenticeship Levy) and have an account to draw from. If it's under, the government funds 100% of training for apprentices aged 16–24 and 95% for those aged 25 and over.

Levy payer

Pay bill over £3 million

You're already paying 0.5% of your pay bill into the Growth and Skills Levy. That money sits in your apprenticeship service account, ready to spend on training and end-point assessment.

  • 100% of training and EPA paid from your levy account, up to the funding band maximum.
  • Apprentices aged 16–24 stay fully government-funded even once your account runs dry.
  • If your account runs out, you co-invest 25% for apprentices aged 25 and over (new starts from August 2026).
  • Funds expire 12 months after they enter your account; we’ll help you spend them well.
  • Transfer up to 50% of unused funds to SMEs in your supply chain.
Review your levy account
Small & medium-sized employer

Pay bill under £3 million

You don’t pay the levy, and for apprentices aged 16 to 24 the government now picks up 100% of training and assessment costs. For apprentices aged 25 and over, it pays 95%.

  • 100% funded for apprentices aged 16–24 (new starts from 1 August 2026).
  • For apprentices aged 25 and over, government pays 95% and you co-invest 5% of the funding band.
  • £1,000 for taking on a 16–18-year-old, plus a £2,000 hiring payment for under-25s from October 2026.
  • Receive transferred levy from larger employers; we’ll help match you.
Get an SME funding quote

The Growth and Skills Levy, in plain English

If your pay bill is over £3m, you're already paying.
The question is whether you're spending it.

Introduced in 2017 as the Apprenticeship Levy and renamed the Growth and Skills Levy in April 2026, it is a 0.5% charge on the UK pay bill of every employer over £3 million a year. HMRC collects it monthly through PAYE; the funds then appear in your apprenticeship service account, where they can be spent on apprenticeships, foundation apprenticeships and, since April 2026, short-course apprenticeship units.

Every employer gets a £15,000 annual allowance to offset against the levy. From August 2026 the government's 10% top-up no longer applies, and what you don’t use within 12 months, HMRC takes back.

  • 0.5% Of your annual pay bill, collected monthly through PAYE.
  • £15k Annual allowance every employer can offset against the levy.
  • 12mo Window before unspent funds expire, down from 24 months for funds entering from August 2026.
  • 25% Your co-investment for apprentices aged 25+ once your account is empty (was 5%). Under-25s stay fully funded.

What apprenticeship funding covers

The part your buyers always ask about.

Apprenticeship funding is generous, but it isn’t a training budget you can stretch into anything. This is what it can and cannot be spent on, so there are no awkward conversations at audit.

Funding covers
  • Off-the-job training delivered by an approved provider.
  • Coaching, e-learning and 1:1 tutor time towards the standard.
  • End-Point Assessment fees, paid to an approved EPAO.
  • Functional Skills English & Maths, where required.
  • Registration and certification with the awarding body.
Funding can't be spent on
  • The apprentice's wages, pension or National Insurance.
  • Travel, accommodation or subsistence costs.
  • Work clothing, PPE or equipment for the role.
  • Membership fees not directly required by the standard.
  • Time the apprentice spends in their day-to-day job.

Levy transfer

Got more levy than you can spend? Transfer it.

Levy-paying employers can transfer up to 50% of their unused account funds to other employers each year, usually SMEs in their supply chain, franchise network, or local community. It's a powerful way to invest in the businesses you depend on, without losing the money to expiry.

On the receiving side, an SME can take a transfer and put a learner into training at no cost. TLC will broker the relationship, handle the paperwork, and deliver the programme end-to-end.

Talk to us about transfers
A team meeting where funding options are being discussed around a laptop

Extra incentives

Money the government adds on top.

Beyond the headline funding rate, there's a handful of extra incentive payments worth knowing about, especially if you’re hiring younger apprentices or supporting learners who need additional help.

£1,000

For 16–18 year-old apprentices

Paid to the employer in two instalments, at month three and month twelve. The same payment applies for 19–24-year-olds who are care leavers or have an EHCP.

£2,000

SME hiring payment for under-25s

From October 2026, non-levy employers taking on an apprentice aged 16–24 receive a £2,000 payment on top of fully funded training.

100%

Full funding for under-25s

For new starts from 1 August 2026, government covers 100% of training and assessment for apprentices aged 16 to 24, for levy and non-levy employers alike.

£150

Typical monthly employer NI saving

Employers pay no Class 1 secondary NI on apprentices under 25 earning below the upper secondary threshold, about £150 a month on a £17,000 salary.

How funding works with TLC

From "I think we qualify" to "first apprentice enrolled" in four steps.

Funding paperwork is the part employers worry about most. With TLC, it’s the part you’ll think about least: we set up the accounts, complete the compliance and report the spend.

  1. Funding review

    A 30-minute call to confirm your levy position, your roles and the funding bands that apply to each standard.

  2. Apprenticeship service account set-up

    We help you create, or take a look at, your apprenticeship service account, and link TLC as your training provider.

  3. Cohort & commitment

    For every learner, we create a digital "apprenticeship commitment" detailing the standard, start date, funding band and price.

  4. Draw-down & reporting

    Funds are drawn from your account monthly against delivery, with a transparent statement so you always know what's been spent and what's left.

Frequently asked questions

Funding questions, answered.

How do I know if my business pays the Growth and Skills Levy?

If your organisation’s annual pay bill exceeds £3 million, you pay the levy: HMRC collects 0.5% of your pay bill each month through PAYE. Connected companies and charities are assessed as a single group. If you're not sure, your payroll team or accountant can confirm in minutes, or we can run through it on a funding call.

What happens to my levy funds if I don't spend them?

Each monthly contribution into your levy account expires after 12 months on a rolling first-in, first-out basis (24 months for funds that entered before August 2026), so older funds are spent first. Anything unspent at the deadline is returned to HM Treasury. Most TLC employer partners run a quarterly review with us to make sure nothing's about to expire.

Can existing employees go onto an apprenticeship?

Yes, provided the apprenticeship gives them substantial new skills directly relevant to their role. Many of our most successful employer programmes use apprenticeships to move long-serving staff into senior care, team-leader or operations-manager positions.

How does government co-funding work for SMEs?

If your annual pay bill is under £3 million, the government pays 100% of training and assessment costs for apprentices aged 16–24 who start on or after 1 August 2026, with no employer contribution at all. For apprentices aged 25 and over, the government pays 95% up to the published funding band maximum and you pay the remaining 5% directly to TLC.

Can I receive transferred levy funds from another employer?

Yes. Larger employers can transfer up to 50% of their unused levy to any other employer through the Apprenticeship Service. TLC regularly brokers these transfers between our levy-paying partners and SMEs in their supply chains; speak to us if you’d like us to match you.

Does funding cover devolved nations (Wales, Scotland, Northern Ireland)?

The Growth and Skills Levy and the co-funding rules above apply to apprentices whose primary workplace is in England. Wales, Scotland and Northern Ireland run separate apprenticeship systems, and TLC's funded delivery is in England. Talk to us if you have a multi-nation team and we'll point you to the right route for each.

What if an apprentice leaves part-way through their programme?

You stop being charged for that learner's training as soon as their apprenticeship is paused or withdrawn on the Apprenticeship Service. We work with you to either re-engage the learner, transfer them to a new employer, or close the commitment cleanly, with no ongoing levy spend against an empty seat.

Is there a limit on the number of apprentices we can fund?

No. There's no cap on the number of learners a levy-paying employer can put through training. You’re limited only by what’s in your account plus any transferred funds, and once it’s empty, under-25s stay fully funded while you co-invest 25% for older apprentices. SMEs also have no cap on numbers.

Funding review

Let’s work out what your funding can do.

Bring your pay bill and your roles. We will show you exactly what the next twelve months could look like, with the funding to match.