Apprenticeships combine paid employment with structured off-the-job training, funded through the apprenticeship levy or government co-investment. As an employer, you hire an apprentice on a genuine employment contract, pay at least the apprentice minimum wage, and give them 20% of their paid working hours for training with a recognised training provider. Larger employers pay into a levy account and draw down funds to cover training costs; smaller employers share the cost with government through co-investment — and for apprentices aged 16-24, training is now funded in full.
Core Employer Responsibilities
- Employment and wages: issue a genuine employment contract covering normal work and training hours, paying at least the statutory apprentice minimum wage.
- Training time: protect 20% of the apprentice’s paid working hours for off-the-job training (roughly one day a week or block release).
- Support and mentorship: assign a workplace mentor or line manager to oversee progress reviews and coordinate with your Pitman training coach.
How Apprenticeship Funding Works
- The levy: employers with a total annual pay bill over £3 million pay into the levy, which funds their training costs through a digital account.
- Co-investment: smaller employers not paying the levy share the cost with government, typically paying 5% of the agreed training price, with government covering the rest.
- Fully funded for 16-24s: training costs are now 100% government-funded when the apprentice is aged 16-24, removing the co-investment share entirely for this age group.
- What funding doesn’t cover: apprentice wages remain the employer’s responsibility regardless of levy status.
- National Insurance saving: employers pay no employer National Insurance contributions for apprentices under 25, on earnings up to the upper secondary threshold — a direct cost saving on top of the training funding.
- Stackable incentive: eligible employers can also claim the £3,000 Universal Credit Youth Jobs Grant on top of apprenticeship funding — available to all employers, not just levy or non-levy specific.
Who Delivers the Training?
The training of your apprentices is carried out by a recognised training provider, experienced in delivering apprenticeship standards and levels across a range of occupations. As the employer, you’re responsible for the workplace side of the partnership: the employment contract, wages, mentor time, and protected off-the-job training hours.
Frequently Asked Questions
How much does it cost to hire an apprentice?
Costs depend on the apprentice’s age and your business size. For 16-24 year olds, training is fully government-funded for small employers. For other apprentices, non-levy employers typically pay 5% of the training cost, with government funding the rest. You still pay the apprentice’s wages and, where eligible, may claim additional grants such as the £3,000 Universal Credit Youth Jobs Grant.
Do I have to pay apprentice wages if I’m a levy payer?
Yes. The levy and co-investment funding cover training costs only. Apprentice wages are the employer’s responsibility regardless of levy status, and must meet at least the statutory apprentice minimum wage.
How many hours a week is off-the-job training?
Apprentices are entitled to 20% of their paid working hours for off-the-job training, typically delivered as one day a week or through block release.
Can I use apprenticeships to upskill existing staff, not just new hires?
Yes. Apprenticeships aren’t limited to new recruits — employers can use them to formally upskill existing employees, provided the apprenticeship standard is genuinely new to that employee’s role.
What happens at the end of the apprenticeship?
The apprentice completes an End-Point Assessment with an independent assessor to confirm they’ve met the required standard. Once passed, they’re fully qualified in that occupation.
Do I have to pay employer National Insurance for an apprentice?
No employer National Insurance contributions are due for apprentices under 25, on earnings up to the upper secondary threshold — a direct cost saving alongside the training funding.
