Are apprenticeships free?

When it comes to developing your team, apprenticeships are one of the most cost-effective ways to upskill your workforce. But there's often confusion around the cost- are apprenticeships free? While they're not entirely free, the cost to employers is minimal thanks to government funding making apprenticeships an affordable solution for training and upskilling your employees.

The cost of apprenticeships: what do employers need to know

The cost of an apprenticeship depends on the size of your business and whether or not you pay into the apprenticeship Levy.?

Here is how the funding works: The apprenticeship levy is a monthly payment made by employers with a payroll of over ￡3 million. The levy funds are used to pay for apprenticeship training and assessment.?

How it works for Levy employers:

• Pay the levy: Employers pay the levy as part of their PAYE bill.?
• Access the funds: Employers can access their levy funds through an online apprenticeship service account.?
• Use the funds: Employers can use the funds to pay for apprenticeship training, assessment, and training providers.?
• Manage the funds: Employers can use their apprenticeship service account to manage your funding and provider payments.?
• Return unused funds: Unused funds expire after 24 months and return to the government.?

How it works for Non -Levy employers:

If you don't pay the apprenticeship levy, or if you're a levy-paying employer but don't have enough funds, you'll need to pay 5% of the training and assessment costs for your apprentice. The government will cover the rest, up to the funding band maximum.

Are apprenticeships free for employees?

Yes! Apprentices don't pay for their training - it's entirely funded by the employer and government. This makes apprenticeships an opportunity for your existing staff to grow and learn without a financial burden.

Upskilling your current workforce

One of the biggest misconceptions about apprenticeships is that they're only for new hires. In reality, apprenticeships are open to employees of any age and career stage, making them perfect for upskilling your existing team.

Why upskill your current employees?

• Address skills gaps: Develop employees in areas where your business needs expertise.
• Boost morale: Investing in training shows your team that you value their contributions and career growth.
• Improve retention: Employees who feel supported are more likely to stay loyal to your company.

Examples of upskilling through apprenticeships:

• Enrolling an experienced team member in a Leadership & Management apprenticeship to prepare them for a managerial role.
• Supporting a care assistant to advance with an Adult Care Worker apprenticeship.
• Helping your finance team grow through Accountancy apprenticeships.

Why apprenticeships are worth the investment

Even though apprenticeships aren’t entirely free for employers, the costs are minimal compared to the long-term benefits. Here’s why apprenticeships are a smart investment:

• Low-cost, high-impact: With government funding covering up to 95% of the cost, apprenticeships are incredibly affordable.
• Tailored training: Apprenticeships are designed to meet the needs of your industry and business, providing skills that directly benefit your team.
• Boost productivity: Skilled employees perform better, which positively impacts your bottom line.
• Retention and loyalty: Employees who receive training are more likely to stay with your company long-term.

Debunking the myths about apprenticeships

Let's address a few common misconceptions:

• Aren’t apprenticeships just for young people?

No! Apprenticeships are available for employees of any age, making them ideal for?upskilling experienced team members.

• Do I need to hire new staff for apprenticeships?

Only if you want. Apprenticeships are perfect for training your existing workforce.

• Are they only for entry-level roles?

Not at all! Apprenticeships are available at intermediate, advanced, higher, and even degree levels.

Get started today

Investing in apprenticeships is an affordable, practical way to upskill your workforce and future-proof your business. Whether you’re a levy-paying employer looking to maximise your funds or a small business eager to access government support, apprenticeships offer an incredible return on investment.

?? Contact us today to learn how apprenticeships can help your team grow—and how little it will cost to make it happen!