SKILLCERT INSIGHTS / EMPLOYER GUIDANCE
Apprenticeship Funding for SMEs: What Employers Need to Know
For small and medium-sized employers, apprenticeship funding can make workforce development more accessible. Understanding the contributions, eligibility rules and wider employment costs is the first step towards making an informed decision.
How does apprenticeship funding work?
Apprenticeships combine structured occupational training with practical workplace learning. Each apprenticeship standard has a maximum funding band for eligible training and assessment costs. The amount an employer contributes depends on whether it pays the apprenticeship levy, the apprentice’s age and the funding rules applicable to the start. Public funding does not ordinarily cover wages, supervision or every associated employment cost.
Funding for smaller employers
For eligible starts from 1 August 2026 in England, government funding can cover 100% of eligible training and assessment costs up to the funding band maximum for apprentices aged 16 to 24. For apprentices aged 25 and over, a non-levy-paying employer normally contributes 5% and the government contributes 95%, subject to eligibility and the applicable rules. For example, if an eligible programme costs £10,000 within its funding band, a 5% contribution would be £500. This is illustrative, not a quotation for a Skillcert programme.
What about the apprenticeship levy?
The apprenticeship levy applies to employers whose pay bill exceeds the relevant threshold, subject to allowances and connected-company rules. Levy-paying employers access funding through their apprenticeship service account. Employers with insufficient levy funds may face different co-investment arrangements. The funding position should be checked for the individual apprentice and start date.
What costs should an employer budget for?
Even where training is fully funded, employers must plan for wages, associated employment costs, appropriate supervision, training time during working hours, equipment and any costs outside eligible funding. A realistic budget should also consider the time needed for the apprentice to become productive in the role.
Can existing employees be funded?
Yes, provided the apprenticeship develops substantial new occupational knowledge, skills and behaviours and all eligibility criteria are met. A training provider must assess the employee’s existing qualifications and experience. Public funds cannot be used simply to repeat learning that the individual already possesses.
How to access funding
Employers normally use the government apprenticeship service to manage funding and enrolments. A suitable apprenticeship standard and provider must be selected, and the required approvals and training documents completed. Skillcert can discuss the occupational suitability of its programmes and explain the relevant steps.
How Skillcert can help
Skillcert works with employers to explore apprenticeship training that supports genuine workforce requirements. We can discuss eligibility, the demands of workplace learning and the funding arrangements that may apply. Funding information should always be confirmed against the latest published rules before committing to an apprenticeship.
What funding is available for small businesses?
Many SMEs do not pay the apprenticeship levy and instead access support through the apprenticeship service. For eligible apprenticeships starting from 1 August 2026 in England, the government can cover 100% of eligible training and assessment costs, up to the funding band maximum, for apprentices aged 16–24. For apprentices aged 25 and over, non-levy-paying employers normally contribute 5% while the government covers 95%, subject to the relevant rules. A business should confirm the funding position for its particular apprentice before committing to a programme.
Are there additional financial incentives?
Some employers may qualify for further support depending on the apprentice’s age, circumstances and the schemes in force. This can include certain additional payments or National Insurance relief. Such support is separate from the apprenticeship training funding and may have specific conditions, deadlines and claim processes. Employers should not assume an incentive will apply without checking the latest published guidance.
Why apprenticeships can be a valuable investment
The commercial value of an apprenticeship is not limited to government contributions. Structured training can help employers build occupational capability, develop people familiar with their systems and clients, and plan for future staffing needs. A financial advice firm may develop a future adviser, while a maintenance contractor may invest in practical skills. These outcomes depend on suitable training, meaningful workplace experience and active employer support.
Taking the next step
Funding can make workforce development more accessible, but employers should assess eligibility, employment costs, supervision and the long-term skills their business needs. Skillcert can discuss the apprenticeship programmes available, the training commitment and the funding arrangements that may apply. Confirm the latest rules and individual eligibility before making a financial commitment.
Discuss your apprenticeship requirements with Skillcert
Speak to Skillcert about your workforce development needs, programme suitability and the next steps for your business.