How Apprenticeship Funding Works for Schools

Our team often comes into contact with schools that would love to recruit new staff or upskill their teams, but just aren't aware of the funding available to help them.

That's why we've put together this practical guide. It lays out how apprenticeship funding works for different types of schools and the best ways to make the most of what's available.

What Is Apprenticeship Funding?

Apprenticeship funding is a government-backed investment designed to support employers in recruiting new staff or developing current team members through apprenticeships.

Schools can access and use this funding to support a wide range of roles, including:

• Teaching Assistants
• Early Years Educators
• Business Administrators

The Apprenticeship Levy Explained

The apprenticeship funding system is built around the Apprenticeship Levy.

The levy is paid by employers with an annual pay bill of more than £3 million. These employers contribute 0.5% of their pay bill into a funding pot that can be used to pay for apprenticeship training and assessment.

Many schools in the north-east are maintained by their respective local authority, or are part of a wider academic trust, making them a levy-paying organisation.

For Maintained Schools

Maintained schools in Gateshead are covered under Gateshead Council’s apprenticeship levy arrangements. This means levy funds may be available through the council to support apprenticeship training.

Learning and Skills is the apprenticeship provider for Gateshead Council - we help maintained schools in Gateshead make the most of their apprenticeship levy funding. 

For Academy Trusts

Academy trusts are independent employers. Larger trusts with payrolls above the levy threshold pay directly into the apprenticeship levy and can use those funds to support apprenticeship programmes across their schools.

Trusts manage their own apprenticeship service accounts and decide how levy funding is allocated.

What If a School Does Not Pay the Levy?

Many schools do not directly pay the apprenticeship levy. However, this does not mean they cannot access apprenticeship funding.

Non-levy employers benefit from government co-investment, where the government funds most of the apprenticeship training costs and the employer contributes a small percentage. However, new government funding means that 100% of the training costs are now covered by government, if the apprentice is under 25 years old.

What Can Apprenticeship Funding Pay For?

Apprenticeship funding is solely used for the training part of the apprenticeship. The employer needs to pay the wage of the apprentice, which starts at £8 per hour and then changes after one year, based on the apprentice’s age.

Getting Started

Schools looking to recruit in a cost-effective way should consider tapping into the different funding available to them, including levy funding and financial incentives such as national insurance exemptions and payments into the thousands. 

Book in a ten-minute chat with our Business Development Officers, Nina and Olly, today to see how we can help.