How much does it cost to hire an apprentice? 

Provided your wage bill is less than £3 million per year, you only pay 5% of the training and assessment costs for apprentices. This can be as little as £75 and up to £1,350 depending on the level and type of apprenticeship chosen.   

The government pays the rest (95%) up to their funding band maximum. Employers can access, reserve and pay for Apprenticeship training by setting up an Apprenticeship Service Account.  

Cornwall Council has introduced an Apprenticeship levy transfer fund which can be applied for to cover 100% of training and assessment costs. For more information and to apply click here. 

The Government have introduced a new levy transfer matching service, where Apprenticeship Levy Paying Employers will be able to ‘pledge’ funding and other employers will be able to apply a Levy transfer. https://transfers.manage-apprenticeships.service.gov.uk/ 

If you have any questions on the Apprenticeship Levy, or if you are an Apprenticeship Levy paying employer and would like some help or advice then please contact the Cornwall & Isles of Scilly Growth Hub. 

Extra support for smaller employers 

Employers with fewer than 50 staff do not have to pay the 5% contribution for an apprentice who is aged between: 

• 16-18 years old 
• 19-24 years old and who has previously been in care or who has an Education, Health and Care plan provided by their local authority 

The government will pay 100% of the training and assessment costs for these individuals, up to their funding band maximum. 

Training younger apprentices 

All employers will receive an additional £1,000 if, at the start of the apprenticeship, the apprentice is aged between: 

• 16-18 years old 
• 19-24 years old and who has previously been in care or who has an Education, Health and Care plan provided by their local authority 

This payment is made to the employer in two equal instalments. The first payment is sent after an apprentice completes 90 days of their apprenticeship and the second is sent after 365 days. 

Zero Employer National Insurance contributions – any business that offers apprenticeship training to an employee under the age of 25, does not have to pay any Employer N.I. contributions. This saving is almost always more than the 5% employer contribution to the training cost. 

What if my wage bill is over £3 million? 

If you pay more than £3 million per year in wages, then you must pay the Apprenticeship Levy. Less than 2% of UK employers pay the levy. 

Find out more about the Apprenticeship Levy.