What an apprenticeship actually costs your organisation
Short version: for most organisations we work with, the training is fully funded through the levy or levy transfers. Here is how the funding works, and what to do if you are not sure which rules apply to you.
Three situations, three answers
Annual pay bill over £3 million
You already pay 0.5% of your pay bill into an apprenticeship levy account. Training for any of our programmes is paid from that account, for new or existing staff of any age.
From April 2026 levy funds expire after 12 months, and once your account is empty you co-invest 25% of further training. Using your levy on time matters more than it used to.
Fully funded, with cash on top
The government pays 100% of training and assessment costs for apprentices aged 16 to 24 at non-levy employers. You pay their wage only, and no employer National Insurance for apprentices under 25.
Stackable incentives: £2,000 SME hiring incentive; £1,000 young apprentice payment (16–18, or 19–24 with an EHCP or care leaver status); £3,000 Universal Credit youth jobs grant (18–24, on UC for 6+ months).
95% funded, and usually 100% in practice
The government pays 95% of the training cost and you, as the employer, are expected to contribute 5%. Larger organisations can transfer unused levy to cover that 5%, and we regularly match SMEs such as GP practices and Voluntary Sector organisations with larger levy-paying organisations who want to transfer their levy.
Levy transfers can cover up to 100% of training costs for staff aged 25 and over, bypassing the co-investment entirely.
What it would cost you
| Scenario | Training cost to employer | Incentives and savings |
|---|---|---|
| GP practice (non-levy) recruits a 19-year-old onto the Level 2 Administrative Assistant, then progresses them to Level 3 | £0 | Up to £3,000 in hiring incentives (more if they have been on Universal Credit), no employer NI while under 25 |
| Charity (non-levy) puts a 32-year-old support worker on the Community Health and Wellbeing Worker programme | 5% of the training cost, or £0 with a levy transfer | We arrange the transfer from a levy-paying partner where possible |
| NHS trust or council (levy payer) enrols six team leaders on the Level 4 NHS Transformation and Associate Project Manager | £0 additional: paid from your levy account | Uses levy that would otherwise expire; closed cohort available |
Salaries are always paid by the employer. Apprentices must be paid at least the apprentice minimum wage (£8.00 per hour) in their first year, and the relevant National Minimum or Living Wage (for example, the London Living Wage is £14.80 per hour) thereafter. Community Matters is a Living Wage employer and encourages partners to pay the London Living Wage.
How the money reaches us
Apprenticeship funding never passes through your bank account. Once you have an Apprenticeship Service account and have added Community Matters as your training provider, the government (or your levy account) pays us directly for the training. You see the cost, approve it, and that's it.
Setting up your Apprenticeship Service account
You'll need someone who can sign on behalf of the organisation, your Companies House number, and either a Government Gateway login or your PAYE Accounts Office reference. Create the account at accounts.manage-apprenticeships.service.gov.uk, accept the employer agreement, add us as a provider and give us permission to create apprentice records. It takes about twenty minutes and we're happy to do it with you on a call. You can also watch a step-by-step guidance video.
Levy transfers
Levy-paying employers can transfer a share of their annual funds to other organisations. In London's health and care system this has become the normal way for GP practices, PCNs and charities to fund apprenticeships at no cost: an NHS trust or council pledges the funds, you accept the pledge in your account, and the training is paid. We know which organisations are pledging and will make the introduction.
The rules change
Funding rules are updated every year and the 2026 reforms changed several of them at once. The figures on this page reflect our understanding as of 26 September 2026; we'll always confirm the position for your organisation before you commit to anything. Our news section covers changes as they happen: see Growth and Skills Levy 2026 and Budget 2025.
Funding questions
Who pays for an apprenticeship?
Apprenticeship training is government funded through the apprenticeship levy. If your annual pay bill is over £3 million you already pay the levy and can spend it on training. If you don’t pay the levy, the government funds 100% of training for apprentices aged 16 to 24 and 95% for those aged 25 and over — and a larger organisation such as an NHS Trust or local authority can transfer unspent levy to cover the remaining 5%. In most cases both the employer and the apprentice pay nothing for the training. See our funding and costs page for the detail.
What is the apprenticeship levy?
The apprenticeship levy is a UK government scheme that funds apprenticeship training. Organisations with an annual payroll over £3 million pay 0.5% of it into a digital account, which they can then spend on approved apprenticeship training for new or existing staff. Unused funds expire, and employers can transfer a share of their annual funds to other organisations. If you don’t pay the levy you can still access government funding for apprenticeships. Employees never contribute.
How do I set up an Apprenticeship Service account?
To access funding you need an Apprenticeship Service account at accounts.manage-apprenticeships.service.gov.uk. You’ll need to be someone who can sign agreements on behalf of your organisation, a valid email address, your Companies House number, and either your Government Gateway ID or your Accounts Office reference number (a 13-character code from HMRC). Create your profile, add your PAYE scheme, connect your organisation, accept the employer agreement, then add Community Matters as your training provider and set permissions for us to create apprentice records (and to recruit apprentices, if you’d like our help). We can walk you through this on a short call.
Can I put an existing member of staff on an apprenticeship?
Yes. Many of our apprentices are existing employees being upskilled into a new or bigger role. The apprenticeship must teach substantial new skills, and the person needs to spend around 6 hours a week on off-the-job learning within their working hours.
What do I need to do to support my apprentice?
Give them time for their off-the-job learning (around 6 hours a week), a line manager or mentor who meets them regularly, and opportunities to apply what they learn. We handle the teaching, the assessments and the paperwork, and your dedicated tutor keeps you informed on progress throughout.
Can you help us recruit an apprentice?
Yes. Our recruitment service helps you find, onboard and train new talent through our programmes, and for 16–24 year olds there are government incentives worth up to £6,000 on top of fully funded training. Email apprenticeships@
Let's talk about your workforce
Tell us what roles you're trying to fill or develop and we'll come back within two working days with a funding check and a suggested programme.