Cost and funding

Support with apprenticeship costs

Small to medium sized (non-levy paying) employers will share the cost of training and assessing their apprentices with government – this is called ‘co-investment’.

The co-investment rate has changed for new apprenticeships starting on or after 1 April 2019. You will now pay 5% towards the cost of apprenticeship training. The government will pay the rest (95%) up to the funding band maximum.

All apprenticeships that started before 1 April 2019 will continue at the previous co-investment rate of 10%.

Apprentice wages

An employer has to pay the Apprentice the National Minimum Wage (minimum wage of £3.90 per hour). The Apprentice NMW applies to all 16 to 18 year olds and to those aged 19 and over in the first year of their Apprenticeship.

If the apprentice is aged 19 and/or has completed the first year of their Apprenticeship, the employer must pay the NMW appropriate for their age. However, as skills develop, many employers tend to increase wages. In fact, research has found that apprentices earn an average of £170 net pay per week. More information on the National Minimum Wage rates is available here.

The Apprentice has to work a minimum of 30 hours a week.

Funding

For organisations that employ between 1 and 49 staff, apprentices between the ages of 16-18 have their training fully funded. For organisations that employ over 50 staff and up to an annual payroll of £3million or if an apprentice is aged over 19 at the start of the apprenticeship the employer will be expected to make a contribution towards the cost of training. For employers with an annual payroll exceeding £3million, training costs will be withdrawn from your digital levy account.

Government incentive payments are available if you employ a young person between the ages of 16 and 18. Reaseheath Training will make this application on your behalf.