Understanding the Apprenticeship Levy

Co-investment is a government funding scheme for businesses with a payroll under £3 million, where the government contributes 95% of the training costs.

e-Careers provides tailored employer apprenticeship programmes, free apprenticeship recruitment, and flexible training to help you maximise your levy or access co-investment.

e-Careers offers a wide range of programmes in areas like artificial intelligence, data analysis, accounting, business transformation and leadership all aligned with industry needs. e-Careers also offers a wide range of professional certification courses across topics such as Accounting, Bookkeeping, Artificial Intelligence, Data Analysis, Business Analysis, Cloud Computing, IT & Networking, Cyber Security, Health & Safety, Lean Six Sigma, Project Management, Mortgage Advice and Digital Marketing.

Yes, we offer free apprenticeship agency services to help you find the right talent for your business.

Levy funds are accessed and managed through the government's digital Apprenticeship Service platform after registration.

Traditional apprenticeships typically last 12 to 36 months, while Skillsolve Apprenticeships can be completed in around six months.

Yes, the government apprentice scheme allows you to use levy funds or co-investment to upskill your current workforce. This is known as using apprenticeship levy for existing employees.

While traditional apprenticeships are only for employees in England, Skillsolve Commercial Apprenticeships offer a global solution.

For businesses in England with an annual pay bill under £3 million (non-levy payers), the cost of apprenticeship training is significantly subsidised through a scheme called co-investment.

Typically, you will only need to contribute 5% of the total training and assessment costs, with the government covering the remaining 95% up to the funding band maximum for the specific apprenticeship. You will agree on a payment schedule for your 5% contribution directly with the training provider.

However, there are important exceptions where the government fully funds (100%) the apprenticeship training costs for non-levy paying employers:

• Apprentices aged 16 to 21: If your new apprentice is aged between 16 and 21 (or 15 if their 16th birthday falls between the last Friday of June and August 31st) at the start of their training, the government will cover 100% of the eligible training costs up to the funding band maximum. This means no training costs for you in this scenario.
• Apprentices aged 22 to 24 with additional needs (Small employers): If your business has fewer than 50 employees and you hire an apprentice aged 22 to 24 who:
• • Has an Education, Health and Care (EHC) plan provided by their local authority, or
  • Has previously been in the care of their local authority, the government will also cover 100% of the eligible training costs.

Key points for non-levy payers:

• You will need to create an account on the government's Apprenticeship Service to set up and manage your apprenticeships and access funding.
• The government funding covers the cost of training and assessment up to a set limit (the funding band maximum) for each apprenticeship standard. If you choose training that costs more than this limit, you will need to pay the difference.
• You are responsible for paying the apprentice's wages, which must meet at least the National Minimum Wage for their age and stage of apprenticeship.
• There may be additional incentives available for hiring younger apprentices (aged 16-18) or those with care leaver or EHC plan status, which could provide a £1,000 payment to your business.

In summary, for most non-levy paying employers, apprenticeships offer a highly cost-effective way to train new and existing staff, with the government covering the vast majority of the training expenses, and in many cases, covering the full cost for younger apprentices.

Apprenticeships in the UK offer structured learning pathways across various levels, each building upon the last with increasing complexity and skill development:

• Intermediate (Level 2): Equivalent to GCSEs, providing foundational knowledge and practical skills for entry-level roles in various industries. Often a starting point for those new to a sector.
• Advanced (Level 3): Similar to A-Levels, this level builds upon Level 2, offering more specialised knowledge, technical skills, and the ability to handle more complex tasks and responsibilities.
• Higher (Levels 4 & 5): These levels represent the initial stages of higher education:
• • Level 4: Equivalent to the first year of an undergraduate degree or a Higher National Certificate (HNC). Apprentices at this level develop a deeper understanding of their field, along with more advanced technical and professional skills. They are often taking on more independent work and problem-solving.
  • Level 5: Equivalent to a Foundation Degree or a Higher National Diploma (HND). This level provides a significant level of expertise and often involves managing projects and teams. Individuals at this stage are developing strong analytical and decision-making abilities within their specialism.
• Degree (Levels 6 & 7): These are equivalent to Bachelor's (Level 6) and Master's (Level 7) degrees. Degree apprenticeships offer a route to gain a full university qualification while working and earning a salary. These levels involve high-level strategic thinking, complex problem-solving, and leadership skills.

Choosing the appropriate level depends on the individual's prior qualifications, career aspirations, and the specific demands of the role.

Apprenticeships for adults in the UK are available across all these levels, offering valuable opportunities for experienced workers to gain new skills, formal apprenticeship qualifications, and progress in their careers.

Yes, offering adult apprenticeships and development opportunities is a key strategy for boosting talent retention.

By investing in your employees' skills and career growth, you create greater engagement, job satisfaction, and loyalty.

This clear pathway for advancement and the feeling of being valued reduces turnover, saving recruitment costs and building a more skilled and committed long-term workforce.

Apprenticeships provide a cost-effective way to develop a skilled workforce, close skills gaps, and improve productivity.

No, the costs are transparent. Levy payers use their existing funds, and non-levy payers have a clear co-investment contribution. Skillsolve also offers a fixed-cost model.

The minimum hourly wage for an apprentice in the UK is set by law and is currently £7.55 as of April 1st, 2025. This rate applies specifically to apprentices who are under the age of 19, or those aged 19 and over who are in the first year of their apprenticeship. It's important to note that this apprentice-specific rate is a starting point.

Once an apprentice aged 19 or older has completed their initial year of training, their minimum wage entitlement shifts to the standard National Minimum Wage or National Living Wage, based on their age at that point. As of April 1st, 2025, these broader age-related minimums are £10.00 per hour for those aged 18 to 20, and £12.21 per hour for those aged 21 and over (the National Living Wage).

It's also worth noting that the legal minimums are just a baseline. Employers are encouraged and often do offer higher rates of pay to attract and retain motivated apprentices.

These minimum wage rates, including the specific apprentice rate, are subject to annual review and typically updated in April each year. The type of apprenticeship or the specific industry doesn't legally override these national minimums, although individual sectors or companies may have their own enhanced pay scales.

Crucially, the mandatory 20% off-the-job training that forms part of the apprenticeship must be paid at the apprentice's applicable minimum wage (or any higher rate agreed upon).

Yes, e-Careers offers flexible learning solutions through our online platform and blended learning approaches.

Off-the-Job Training is a mandatory part of every apprenticeship, requiring apprentices to dedicate 20% of their working hours to learning activities outside their regular job duties. This ensures comprehensive skill development.

Examples of OTJ include:

• Formal training:
• • Training sessions and workshops
  • Online courses (eLearning modules, webinars)
  • Software, tools, and labs training
• Experiential learning:
• • Shadowing experienced colleagues
  • Mentoring and coaching sessions
  • Industry visits and events
  • Practical exercises and simulations
  • Job rotation within the company
  • Project work
• Assessment & reflection:
• • Writing assignments and reports
  • Preparation for assessments and exams
  • Reflective learning activities
  • Learner support meetings with trainers or coaches
  • Learner support meetings with trainers or coaches

Key requirements:

• OTJ must take place during the apprentice's normal working hours.
• All OTJ activities must be directly relevant to the knowledge, skills, and behaviours outlined in the apprenticeship standard.

Apprentices must be 16 or older, have the right to work in the UK, and have an employment contract. There are no upper age limits. Maths and English qualifications may need to be worked towards during the apprenticeship.

The Employer: Enabling practical experience

The employer provides the real-world setting for the apprenticeship. Key roles include:

• Offering relevant job tasks aligned with the apprenticeship standard.
• Providing on-the-job training and guidance from experienced colleagues.
• Assigning a supervisor or mentor for ongoing support and feedback.
• Facilitating the apprentice's 20% off-the-job training time.
• Collaborating on the training plan with the provider and apprentice.
• Monitoring progress and offering regular feedback.
• Communicating with the training provider on the apprentice's development.
• Ensuring a safe and inclusive learning environment.
• Participating in the end-point assessment process.
• Considering long-term employment opportunities.

The Apprentice: Driving their own development

The apprentice actively engages in their learning journey by:

• Committing to learning both on and off the job.
• Working towards the training plan requirements.
• Taking initiative and seeking learning opportunities.
• Applying learned skills in the workplace.
• Documenting their learning and progress.
• Attending and participating in off-the-job training.
• Completing assignments and assessments.
• Communicating effectively with all parties.
• Adhering to workplace policies and safety.
• Taking responsibility for their development.

The Training Provider: Guiding learning and assessing skills

The training provider delivers the educational framework by:

• Developing and delivering training aligned to the apprenticeship standard.
• Providing qualified trainers and assessors.
• Collaborating on the training plan with the employer.
• Offering learning resources and support.
• Monitoring and tracking the apprentice's progress.
• Ensuring the quality of training and assessment.
• Communicating regularly with the employer.
• Preparing the apprentice for the end-point assessment.
• Issuing the apprenticeship completion certificate.

In short, employers provide the work context, apprentices drive their learning, and training providers deliver the structured education and assessment. Collaboration between all three is key to a successful apprenticeship.