How Non-Levy Employers Can Benefit From Apprenticeships

Apprenticeships provide your business with an opportunity to recruit and train new talent, as well as upskill your existing employees, helping your business adapt and grow. The apprenticeship levy, introduced in 2017 and paid by large employers with a pay bill of over £3 million, can be used by these employers to spend on their training costs.


Large businesses are not the only organisations that can benefit from apprenticeship funding support, however – non-levy paying SME employers can also benefit from the scheme, with funding opportunities potentially covering the full cost of the apprenticeship (depending on conditions).

Definition of a non-levy employer

A non-levy employer is a business with an annual pay bill below £3 million. As a non-levy employer, you will not be paying 0.5% of your payroll as an apprenticeship levy. Instead, you are eligible for funding from the government towards your apprenticeship costs.

How much do apprenticeships cost for non-levy employers?

Depending on whether your business meets certain conditions, non-levy employers are eligible for 95 – 100% funding from the UK Government to cover the costs of apprenticeships.



95% Government Funding 100% Government Funding
Non-levy employers can receive 95% apprenticeship funding from the UK Government if: Non-levy employers can receive 100% apprenticeship funding from the UK Government if:
  • They have an annual wage bill below £3 million;
  • They have over 50 employees and hire an apprentice aged 16+, OR, they have fewer than 50 employees and hire an apprentice aged 19+.
  • They have an annual wage bill below £3 million;
  • They have fewer than 50 employees and hire an apprentice aged 16-18.

What non-levy employers need to pay

You will still need to pay your apprentice for their normal working hours and any training they do as part of their apprenticeship. This must be at least the National Minimum Wage rate, depending on their age and how many years they are into their apprenticeship.


The rates from April 2022 are:


Apprentice Under 19 19 – 20 21 – 22 23 and over
In first year £4.81 £4.81 £4.81 £4.81
Completed first year £4.81 £6.63 £9.18 £9.50

What non-levy employers can use apprenticeships for:

Just like levy-paying employers, non-levy employers can use apprenticeships both to recruit new talent to join their staff and to upskill existing employees. This can be through apprenticeships specific to a sector, such as construction apprenticeships or healthcare apprenticeships, or developing key business skills in your company, such as Business Administration or Team Leadership.

Contact Us


To find out more about how apprenticeships can work in your business, please contact our team through the form below.

    By submitting your information, you are giving consent for us to store your data and contact you regarding our services. For more information refer to our privacy policy.

    Please let us know the topic of your enquiry

    Would you like to receive our Employer Newsletter, featuring news on professional programmes and employer engagement opportunities with our sister company, North Hertfordshire College?
    Sign up for the Employer Newsletter (Optional)

    Thanks for your message! You can expect to hear from us soon.