If you’re a fire and security company thinking about taking on an apprentice (or perhaps you’re considering starting an apprenticeship yourself), one of the first questions that comes up is usually:
Who actually pays for the training?
You’ve probably heard the terms “apprenticeship levy” and “SME funding” thrown around, but unless you’ve dealt with it before, it can sound complicated.
And because we don’t want apprenticeship funding to be the thing that stops you from developing your business (or your career!), this post will break it all down for you!
What is the Apprenticeship Levy?
The Apprenticeship Levy is a pot of money set aside by the government to help fund apprenticeship training across England.
- Companies with an annual payroll of more than £3 million are called “levy-paying employers.”
- These companies automatically pay 0.5% of their payroll into the levy every year.
- The funds can only be used for approved apprenticeship training.
In other words, if you’re a levy-payer, you already have money set aside to fund apprenticeships. It looks like an extra tax, but it’s actually a training budget waiting to be used!
What if you’re an SME?
Most fire and security companies in the UK are SMEs which means their payroll is under £3m a year.
However, there are two types of SME companies:
- Under 50 employees
- Over 50 employees
If you’re an SME company and have under 50 employees, the government will fund 100% of the apprenticeship, only if your apprentice is under the age of 22.
If you’re an SME company and have 50 employees or more, the government will fund 95% of the training cost. You’ll only pay 5% of the training, but it still works out at a fraction of the cost of private training.
AND your apprentice will be getting some of that private training included in our apprenticeship for free (e.g. Asbestos Awareness, ECS Card, BS 5839-1:2025 with Elevation Fire Training).
What does apprenticeship funding mean if I’m an apprentice?
Good news for you!
No matter the case, you will never pay for your own training. Your employer and/or the government will completely cover the costs and it’s unlikely that you will ever have to pay it back.
That means you earn a wage while gaining a recognised qualification without student debt to pay off.
So who pays what? (Recap)
- Large Employers (Levy Payers): Use the levy funds they already contribute meaning training is effectively pre-paid.
- SMEs (Non-Levy Payers): Pay 5% of the training cost, with the government funding the rest. Or nothing at all!
- Apprentices: Pay nothing. Full stop.
It’s widely known that apprenticeships are one of the most cost-effective ways of training the next generation of fire and security engineers. Funding ensures that quality training is affordable and accessible for all.
What to know your exact funding options? Let us help you! Contact us today and we’ll break it down.