Apprenticeship Funding Guide for Employers

Maximise your investment. Grow your talent.

Speak to an Expert
Changes for 2026/27

Apprenticeship Funding – Helping You Make the Most of Every Penny.

Whether you’re a small business or a large organisation, we can guide you through the process of funding your apprenticeships — from your first apprentice to your long-term workforce strategy.

We’ll help you:

  • Access the right government funding for your size and sector

  • Understand how the Apprenticeship Levy or co-investment works

  • Make full use of your Digital Apprenticeship Service (DAS) account

  • Align apprenticeship training to your business goals

Our team will show you how to turn funding into a strategic investment in your people.

Option 1: Apprenticeship Levy Payers

If your organisation has a UK payroll of over £3 million per year, you will already be paying the Apprenticeship Levy — a government tax scheme designed to fund workforce training.

  • Levy funds are collected monthly via HMRC at 0.5% of your annual payroll.

  • These funds appear in your Digital Apprenticeship Service (DAS) account.

  • You can then use this digital fund to pay 100% of the training costs for both new apprentices and existing employees.

Use it or lose it: Levy funds expire after 24 months if unspent — so let NCC help you plan a pipeline of training that puts your funds to work.

We’ll help you:

  • Identify which apprenticeship standards match your workforce needs

  • Forecast levy spend across departments

  • Maximise your investment through smart use of unspent levy funds

Funding Options for Employers.

Option 2: Co-Investment for Non-Levy Payers

If your business has an annual payroll under £3 million, you won’t pay the levy — but you can still access government funding.

Through co-investment, the cost of apprenticeship training is shared:

  • The government pays 95% of training and assessment costs.

  • Your business pays just 5%.

  • If your company has fewer than 50 employees, the government will pay
    100% of the costs for apprentices aged 16–21.

Example:
If an apprenticeship costs £5,000, you’ll contribute only £250 — and we’ll guide you through every step of the process.

Option 3: Apprenticeship Levy Transfer

If you’re a non-levy employer, you may be eligible to receive transferred levy funds from a larger organisation that has unused budget.

  • Levy-paying employers can transfer up to 25% of their unspent levy funds to other businesses.

  • Transferred funds cover 100% of apprenticeship training costs for your new or existing staff.

Benefit for all: Larger employers meet their social responsibility and supply chain goals, while SMEs gain fully funded training.

We’ll Support You Every Step of the Way

When you work with New City College, we make the funding process simple and transparent.


Our Team will:

  • Help you set up your Digital Apprenticeship Service (DAS) account

  • Support you to reserve or draw down funding

  • Advise on levy transfer opportunities

  • Ensure paperwork and compliance are handled smoothly

  • Provide clear reporting on apprentice progress and outcomes

We do the admin — you focus on developing your people.

Speak to an Expert

Apprenticeship Funding and Assessment Changes 2026/27

Guidance for New City College Employer Partners.

View here

Employer FAQs –
Apprenticeships 2026-27

  • In most cases, the main funding changes apply to new starts from 1 August 2026. However, assessment reform may affect apprentices differently depending on the version of the standard they are on. NCC will review this standard by standard.

  • Where a levy paying employer has insufficient funds in their Apprenticeship Service account, the employer contribution will increase to 25% for new starts from 1 August 2026.

  • For non levy employers recruiting apprentices aged 16–24, apprenticeship training and assessment costs will be fully funded by government, up to the funding band maximum.

  • For non levy employers recruiting apprentices aged 25 or above, the employer contribution remains 5%.

  • Employers will need to review and approve apprentice records once they appear in the Apprenticeship Service. These records will be generated from provider ILR data.

  • Provider funding may be delayed if the employer does not approve the record. Prompt approval helps ensure apprenticeship funding and onboarding are not delayed.

  • Not immediately for all apprenticeships. For revised standards, the system is moving towards “apprenticeship assessment”, which may take place during the apprenticeship rather than only at the end. Some standards will continue to use existing EPA arrangements during the transition.

  • Potentially, but not all at once. Construction and engineering standards will need to be monitored individually. NCC will advise employers if assessment arrangements change for a specific standard.

  • Apprenticeship units are intended to support targeted upskilling in specific areas. They may help existing staff develop new technical skills without completing a full apprenticeship. Further guidance is expected.

  • Employers should review planned apprenticeship recruitment, check Apprenticeship Service access, confirm who will approve apprentice records, and discuss 2026/27 starts with NCC before finalising plans.