When employers ask how much an apprentice costs, they are rarely asking for a single figure.
There is the cost of the apprenticeship training. There is the apprentice’s salary. You may also need to account for pension contributions, equipment, supervision and the time the apprentice spends training during working hours.
The total investment will depend on your organisation, the apprentice’s age, how the training is funded and whether you are recruiting someone new or developing an existing employee.
Here is what you need to consider when working out the likely cost.
An apprenticeship combines a real job with structured training.
The training and assessment may be partly or fully funded. However, the apprentice is still your employee. You are responsible for their salary and the usual costs associated with employing them.
This distinction matters. A “fully funded apprenticeship” means eligible training and assessment costs are covered up to the apprenticeship’s funding band maximum. It does not mean that employing the apprentice has no cost.
Your overall investment may include:
Apprenticeship training and assessment
Salary
Employer pension contributions, where applicable
Employer National Insurance, where applicable
Paid time for apprenticeship training
Supervision and mentoring
Recruitment, induction and onboarding
Equipment, uniform, travel or other role-related costs
Some of these costs apply to any employee. Others will depend on the apprenticeship and how you organise the role.
How much will the apprenticeship training cost?
Every apprenticeship has a funding band maximum. This sets the maximum amount of government or apprenticeship levy funding that can be used towards eligible training and assessment.
For apprenticeships starting from 1 August 2026, the amount an employer contributes depends mainly on the apprentice’s age, whether the employer pays the apprenticeship levy and the funds available in its apprenticeship service account.
If the apprentice is aged 16 to 24
For eligible apprenticeships starting from 1 August 2026, the government funds 100% of eligible training and assessment costs, up to the relevant funding band maximum, for apprentices aged 16 to 24 working for non-levy-paying employers.
Full government funding also applies where an eligible apprentice aged 16 to 24 works for a levy-paying employer that does not have sufficient funds in its apprenticeship service account.
If the apprentice is aged 25 or over
A non-levy-paying employer will generally contribute 5% of the eligible training and assessment cost. The government funds the remaining 95%, up to the funding band maximum.
Levy-paying employers can use available funds in their apprenticeship service account. If those funds run out, the current co-investment arrangement for eligible apprentices aged 25 and over requires the government to fund 75% and the employer to contribute 25%, up to the funding band maximum.
Funding depends on the individual apprentice and employer meeting the relevant eligibility requirements. Different rules may also apply to apprenticeships that started before 1 August 2026, so you should check the position for each apprentice.
Can a levy transfer cover the training?
A levy transfer can provide another route to funding apprenticeship training and assessment.
Levy-paying employers can transfer up to 50% of their previous financial year’s apprenticeship levy funds to other employers. The receiving employer can use those funds for eligible training and assessment costs, up to the funding band maximum.
A transfer can support a newly recruited employee's apprenticeship or an existing employee's apprenticeship. However, it must normally be agreed to before a new apprenticeship starts. It cannot generally be applied retrospectively after the employee has already started their apprenticeship.
Transferred funds do not cover salary or other employment costs. The apprentice’s employer remains responsible for those costs.
Aspire Training Solutions can help employers explore whether a levy transfer or another funding option may be available.
You must employ and pay an apprentice for the work they do, including time spent completing apprenticeship training during normal working hours.
From 1 April 2026, the statutory apprentice rate is £8 per hour. This applies to apprentices who are:
Aged under 19
Aged 19 or over and in the first year of their apprenticeship
Once an apprentice aged 19 or over has completed the first year of their apprenticeship, they must receive at least the National Minimum Wage or National Living Wage for their age.
These are legal minimums. Employers can choose to pay more, and the salary may need to reflect the role, the local recruitment market, and the responsibilities involved.
When budgeting, consider the full length of the apprenticeship. An apprentice’s minimum legal rate may change during the programme because of their age, progression beyond the first year, or annual increases in statutory wage rates.
Apprentices have employment rights and should receive the same conditions as employees in a similar grade or role.
Depending on the apprentice’s circumstances and your employment arrangements, additional costs may include:
Workplace pension contributions
Holiday pay and sick pay
Equipment, clothing or uniform
DBS checks where required
Travel expenses
Recruitment and onboarding
Line-management and mentoring time
These are not apprenticeship training charges. They are the wider costs of employing and supporting someone effectively.
Employer National Insurance
Employers can benefit from a zero rate of employer National Insurance on the earnings of eligible apprentices under 25, up to the Apprentice Upper Secondary Threshold.
For the 2026 to 2027 tax year, that threshold is £967 per week, £4,189 per month or £50,270 per year. Employers pay National Insurance at the applicable rate on earnings above the threshold.
The apprentice may still pay employee National Insurance depending on their earnings. Employers should check that payroll uses the correct National Insurance category.
What does paid training time cost?
Apprentices must be paid for time spent completing required apprenticeship training during normal working hours.
For apprenticeships starting from 1 August 2025, off-the-job training is no longer based on a blanket requirement of 20% of working hours. Each apprenticeship standard now has a published minimum number of off-the-job training hours.
The training plan should set out:
The minimum training hours required
What activities will count as off-the-job training
How the training will be scheduled
How prior learning affects the programme
How the employer, apprentice and provider will support delivery
Training can include taught sessions, coaching, mentoring, shadowing, project work, practical training and online learning where these activities develop the knowledge, skills and behaviours required by the apprenticeship.
Paid training time is not necessarily additional pay because the apprentice is already paid for their contracted hours. However, it may still create an operational cost. You may need to plan cover, adjust workloads or allow colleagues time to support the apprentice.
Consider this before the programme begins, rather than treating it as an unexpected cost later.
Some employers can receive additional financial support towards the cost of employing an apprentice.
The £1,000 additional payment
Employers receive a £1,000 payment when they take on an apprentice who, at the start of their apprenticeship, is:
Aged 16 to 18
Aged 19 to 24 and has an Education, Health and Care Plan
Aged 19 to 24 and has previously been in the care of their local authority
The training provider claims the payment and passes the employer’s payment to them. It is normally paid in two equal instalments.
The new apprenticeship hiring payment
From 1 October 2026, non-levy-paying employers can receive a payment of up to £2,000 when they recruit an apprentice aged 16 to 24 as a new employee.
The apprenticeship must start on or after 1 October 2026, and the apprentice must have joined the employer within the previous three months. This means eligible employees recruited from 1 July 2026 may qualify where their apprenticeship starts from 1 October.
The training provider claims the payment and passes it to the employer. It is paid in two equal instalments, normally after the apprentice has completed 90 and 365 days of their apprenticeship. If the apprenticeship lasts less than 12 months, the second instalment is paid after 242 days.
The earliest payments to training providers are expected from January 2027.
Can an employer receive more than one payment?
Yes. Employers can receive the new apprenticeship hiring payment alongside existing payments where the employer and apprentice meet the separate eligibility conditions.
For example, an eligible non-levy-paying employer recruiting an apprentice aged 16 to 18 could receive:
Up to £2,000 through the new apprenticeship hiring payment
The existing £1,000 additional payment
This could provide the employer with up to £3,000 for the same apprentice.
Other support may be available in particular circumstances. Employers should check the eligibility requirements for each payment rather than assuming that every apprentice or organisation will qualify.
Financial support should contribute to a sound recruitment decision. It should not be the only reason for creating an apprenticeship role.
Existing employees can complete apprenticeships if the programme develops substantial new knowledge, skills and behaviours and their job allows them to apply them.
In this situation, the salary may already be part of your workforce budget. Your additional investment may therefore focus on training time, management support, and any contribution required towards the apprenticeship training.
However, you cannot use an apprenticeship to fund training for skills the employee already has. The provider must assess prior learning and use this to agree an appropriate training plan and price.
For a recruit, you will need to budget for the full employment cost as well as induction, supervision and the time it takes the person to become established in the role.
Neither option is automatically better. The right decision depends on whether you need to recruit new capacity, develop an existing colleague or do both.
Before committing to an apprenticeship, ask:
Which apprenticeship is appropriate for the role and workforce need?
Is the person eligible for apprenticeship funding?
What is the funding band maximum?
Will the training be fully funded, co-funded or paid through a levy transfer?
Could any cost fall above the funding band maximum?
What salary will you offer throughout the programme?
Could the apprentice’s minimum legal pay rate change during the apprenticeship?
What pension, National Insurance and employment costs will apply?
How many paid off-the-job training hours are required?
How will training fit around operational responsibilities?
Who will supervise and support the apprentice?
Are any employer payments or incentives available?
Are you recruiting someone new or developing an existing employee?
A provider should work through these questions with you before presenting a final cost.
Aspire Training Solutions supports employers across education, community sport and physical activity, and care and health and wellbeing. We can help you identify an appropriate apprenticeship, understand the funding route and plan what the programme will require from your organisation.
Explore Aspire’s apprenticeships for employers or speak to our team about your workforce and funding options. Book a meeting with our team.