This page will cover information on funding, costs, bonuses and incentives associated with having an apprentice in your business.
Any size company can take on an apprentice – even a sole trader, you would just need to set up PAYE.
Course Costs - Levy payers
A levy payer must pay for the full course cost out of their levy pot. If there is not enough money in the levy pot to cover the course in full, the employer must pay 25% of the outstanding balance – the remainder is paid by the government.
Couse costs - Non-levy payers
If you do not pay the apprenticeship levy, then the government will fund 95-100% of the apprenticeship course costs.
The course costs are fully funded for any apprentice aged 16-24 at the point of starting their apprenticeship, with empliyers paying only 5% of the course cost for apprentices aged 25 and over.
What is the Apprenticeship Levy?
Any employer with an annual wage bill of over £3 million pays 0.5% of their wage bill over this amount into a levy pot. This amount is taken automatically, and your balance taken can be seen on your DAS account – see further below.
The value of your levy contribution can be used on apprenticeship training within your own business, or it can be gifted to another small business. If it isn’t used within a 12 months, the value is forfeit.
You should already be aware if you are a levy payer – however if you are unsure, check with your Accounts team who will be able to confirm.
Additional costs
Wages – the apprentice will need to be paid a full time wage, even on days that the apprentice is in training – including days at the training centre.
The apprentice wage for the first year of their course is £8.00 an hour (April 2026). Following the first year of their apprenticeship they must be paid national minimum wage for their age:
- Aged 16-18: £8.00 per hour
- Aged 19-20: £10.85 per hour
- Aged 21 and above: £12.71 per hour
You can choose to pay your apprentice over the minimum wage.
Example wage bill for the first year: £15,600 (based on the April 2026 apprenticeship wage and 37.5 hours a week)
Travel and overnight costs – if the apprentice is a distance learner, the employer will need to cover the travel and any associated costs for time spent at the training centre.
Apprenticeship incentives
Employer bonus payments
For both levy and non-levy payers, there is £1000 incentive for taking on an apprentice if they are:
- Aged 16-18
- Aged 19-25 and have a EHCP (Education, Health and Care Plan)
- Aged 19-25 and have been in care of the local authority
WEBS Training pay this to you in two installments – one around 90 days after the apprentice sign up date, and the other after around six months.
There are additional bonus schemes being launched by Skills England in October 2026.
Exemption from National Insurance contribution
If you have an apprentice under the age of 25, you may be exempt form paying Class 1 National Insurance contribution for the individual.
Example NIC savings for the first year: £1,590 (based on April 2026 apprenticeship wage and 37.5 hours a week)
Other support and grants
CITB (Construction Industry Training Board)
Our Fitted Interiors Installer and Floorlayer courses are approved courses by CITB.
If are a CITB Registered Employer, and pay into CITB, then you may have access to their grant scheme:
- £2,500 per year for the apprentice attendance
- £3,500 achievement grant
They also provide an initiative called ‘Travel to Train’ which offers 80% of accommodation costs when overnight stays for training are required, along with contributions to travel costs.
Please contact CITB to check your eligibility, or contact us for support.
Apprentice CSCS Cards
CSCS offer a free of charge Apprentice Card to cover your apprentice throughout the duration of their course.
Our Floorlayer and Fitted Interiors Installer courses are both approved courses to qualify for the free card.
The health and safety certificate required in order to apply for the Apprentice Card is still chargeable, but CITB do offer this at a reduced rate for apprentices.
You can apply for the Apprentice card on the CSCS website, and find a test centre through the CITB website.
Securing your funding
Setting up your account on DAS
In order to take on an apprentice you must have an account on the government platform DAS (Digital Apprentice Service, now also referred to as Apprentice Service).
WEBS can support you in setting up this account if you need help.
When you enter your PAYE number, the system will recognise you whether you are a levy payer. If you are a levy payer, you will be able to view the balance of your levy pot on this account.
Give permission
- Permission to advertise vacancies
- Permission to add records: reserve funding (for non-levy payers), add apprentice details once recruited
This will save you time.
Anything entered by WEBS will need to be approved by you, so you are still in control of the information on your account.
Non levy – reserve funding
When you are within three months of an apprentice starting, you need to reserve the funding – simply by adding the apprenticeship course you are planning to put your apprenticeship on.
This can be amended to another course if required.
If you have given us permission, WEBS will do this for you.
Levy payers – you do not need to reserve funding, as the funding comes from your levy pot
Adding your apprentice
Once you have recruited your new apprentice this needs to be added to your DAS account.
WEBS are able to do this for you, if you have given us this permission.
We are here to help
Let us know if you need support and we can help you set up your account
Making payment
Levy payer:
The cost of the standard will be taken automatically from your levy pot when you register your apprentice. If you do not have enough in your levy pot to cover the cost of the course, you will have to pay 5% of the value of the shortfall.
We will break down the total amount of the shortfall and invoice you for this monthly. The value invoiced may vary depending on what your wage bill is for that month, which would affect how much goes into your levy pot and therefore how much is needed to be paid.
You can check the value in your levy pot on your DAS account. We cannot see how much is in your levy pot, so you will need to look in advance to see if you will have enough to fund the course, or if there will be a balance amount you will need to pay.
Non-levy payer:
We will invoice you for the 5% value within the first three months of the apprentice start date.
Depending on the value this can be broken into three payments over consecutive months.