Non Levy Funding

Non-Levy apprenticeships

Not every organisation pays into the Apprenticeship Levy in fact, around 98% of UK businesses fall into the non-Levy category, meaning they have an annual pay bill below £3 million.

The good news is that non-Levy employers can still access significant government funding to support apprenticeship training and Assessment. Under the current funding model, the government covers 95% of the total training and assessment costs, with employers contributing the remaining 5% directly to their chosen training provider.

This co-investment approach ensures that apprenticeships remain accessible and affordable for businesses of all sizes. It allows employers to upskill existing staff or recruit new talent with minimal financial commitment while gaining long-term productivity, quality and performance benefits.

For example, if an employer chooses the Improvement Practitioner (Level 4) apprenticeship — for example, at a total funding band value of £6,000 — the contribution would work as follows:

  • Government contribution (95%): £5,700

  • Employer contribution (5%): £300

When an employer works with a training provider to deliver an apprenticeship, they agree a price for the full programme — including both training and Assessment.

Under the current co-investment model:

    • The government funds 95% of the total cost.

    • The employer contributes 5%, paid directly to the training provider.

If the total agreed cost of the apprenticeship is £5,750:

  • Government contribution (95%): £5,462.50

  • Employer contribution (5%): £287.50

The employer and training provider will agree how the employer’s contribution is paid — typically spread across the duration of the apprenticeship.

A proportion of the total funding band is reserved for the Assessment, which is agreed between the employer and provider. As an approved Assessment Organisation, United Centre of Excellence works collaboratively with both parties to ensure the EPA process is clear, consistent, and aligned with the standard requirements.

There are also additional government incentives designed to encourage non-Levy employers to take on younger apprentices:

  • Employers receive a £1,000 incentive payment for each apprentice aged 16–18, paid in two equal instalments at 3 months and 12 months.

  • For small employers with fewer than 50 employees, the government funds 100% of the apprenticeship cost for apprentices aged 16–18 — meaning there is no employer contribution required.

At UCE, we make navigating apprenticeship funding simple. Our team works closely with training providers and employers to:

  • Explain funding rules and payment structures clearly

  • Ensure EPA costs are transparent and agreed early

  • Provide ongoing support throughout the apprentice journey

Whether you’re accessing government co-investment or exploring Levy transfers, UCE ensures that every organisation can benefit from high-quality Assessment and a clear return on investment.

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