What is an apprenticeship?

An apprenticeship is a type of work-based training programme that combines practical on-the-job learning with formal face-to-face or online training. 

During an apprenticeship, apprentices work alongside experienced colleagues to gain hands-on experience and develop practical skills. They also attend off-the-job training sessions to learn the theoretical aspects of their role and industry. At the end of an apprenticeship, apprentices receive a nationally recognised qualification, which demonstrates that they have gained the knowledge, behaviours and skills required to perform their job effectively.

Just like formal education, there are different grades and levels to achieve in apprenticeships.

• Level 2 apprenticeship is equivalent to 5 GCSE passes (9-4)
• Level 3 apprenticeship is equivalent to 2 A-levels passes
• Level 4 apprenticeship is equivalent to a Foundation Degree
• Level 5 apprenticeship is equivalent to a Foundation Degree or above
• Level 6 apprenticeship is equivalent to a BA Hons Degree
• Level 7 apprenticeship is equivalent to a Masters Degree (MBA)

What’s involved in an apprenticeship?

Each apprenticeship is made up of the following components:

On-the-job training: This part of the apprenticeships helps an apprentice develop the specific skills for the workplace where they will need to be supported by a workplace mentor.

Off-the-job training: This training must be directly relevant to the apprenticeship standard and can be delivered at the apprentice’s normal place of work – as long as it’s not part of their normal working duties. It can cover practical training such as shadowing, mentoring, industry visits and attending workshops or competitions.

You can find further details about off-the-job training including best practice examples in the apprenticeship funding rules and, the apprenticeships: off-the-job training guidance on GOV.UK.

Functional Skills:

If an apprentice is aged 16-18 and has not previously achieved the required level of English and maths, they will need to complete Functional Skills as part of their apprenticeship programme.

Functional Skills are no longer mandatory for adult apprentices (19+), however, literacy and numeracy skills remain essential for success. For those without prior English and Maths qualifications, we suggest recommended levels to support career growth and workplace efficiency. Our tailored support ensures these skills are seamlessly integrated into the apprenticeship journey, helping every apprentice develop these vital skills.

Apprenticeship Assessment (AA): The Apprenticeship Assessment is the final stage of an apprenticeship. It is an impartial assessment of whether your apprentice has developed the skills, knowledge and behaviours outlined in the apprenticeship standard. It is an opportunity for your apprentice to demonstrate they are genuinely competent in their job role at the end of their training.

Who can do an apprenticeship?

Apprenticeships are available to all current employees or new entrants with a contract of employment who are aged 16 and over, as long as they are living in England, not in full-time education and will be learning new skills as part of their role. They are set at a level of entry to suit your interest and need. During the application process, we will complete eligibility checks to ensure you can complete the apprenticeship programme.

Apprenticeships can be used to upskill and retrain employees of any age, not only those first entering the industry. There are courses suitable for all ages and career stages, right the way up to degree-level managers and leaders. This includes older workers or existing staff as long as the apprenticeship is giving them new skills in order to achieve competence in their chosen role. 

For instance, hospitality apprenticeship programs are ideal for both new entrants and experienced staff looking to advance their careers in the hospitality sector.

How long does an apprenticeship last?

Apprenticeships have a minimum duration of 8 months, although many programmes take longer to complete. The actual programme duration depends on the requirements of the apprenticeship standard and the learner’s individual needs, prior experience and progress.

How are apprenticeships funded?

Apprenticeships are funded through government support and employer contributions. The funding available depends on the apprenticeship, the apprentice’s age and whether the employer pays the Apprenticeship Levy.

For employers who pay the Apprenticeship Levy

Employers with an annual pay bill exceeding £3 million pay the Apprenticeship Levy. Payments are collected monthly through PAYE, with a levy of 0.5% payable on the portion of the pay bill above £3 million.

For employers who do not pay the Apprenticeship Levy

For new apprenticeships starting on or after 1 August 2026, employers who do not pay the Apprenticeship Levy can receive 100% funding for eligible apprentices aged 16–24 at the start of their apprenticeship. This covers training and assessment costs up to the apprenticeship’s funding band maximum.

Levy transfers to fund apprenticeship costs

Employers can also receive a levy transfer from another business to cover 100% of eligible apprenticeship training and assessment costs, up to the funding band maximum. Businesses of any size can search the government portal for levy transfer opportunities.

Levy Transfers to fund 100% of your apprenticeship costs 

You can now search the government portal for apprenticeship funding opportunities via a levy transfer. As a business of any size, you can use this service to apply for funding from large businesses that want to fund 100% of your apprenticeship training and assessment costs by transferring some of their apprenticeship levy.

What other financial incentives are available?

• If you employ a 16-18 year old apprentice, or someone who is under 24 and has left care or has a local authority health and education place, the employer will receive a bonus payment of £1,000 subject to the apprentice staying on programme for 365 days.
• You are no longer required to pay Class 1 (employer) National Insurance Contributions (NIC) on earnings up to £50,270 for an apprentice you employ aged under 25. That’s a 15% saving on everything your apprentice earns over £9,100 a year for the employers of apprentices.

What do I need to do to start an apprenticeship programme in my business?

If you want to offer apprenticeships in your business in England, you will need to register for an apprenticeship service account. The apprenticeship service is a digital platform that enables employers to manage their apprenticeship programmes, including finding apprenticeship training providers, choosing apprenticeship standards, selecting an apprenticeship training programme, advertising apprenticeship vacancies, and paying for apprenticeship training.

The apprenticeship service is free to use, and you can register for an account online. Once you have registered, you can access a range of tools and resources to help you manage your apprenticeship programme, including information on government funding, apprenticeship standards, and training providers.

Here is the link to set-up your account.

The benefits of apprenticeships speak for themselves

Apprenticeships are a fantastic way to train and develop your employees while giving them the opportunity to gain practical experience and nationally recognised qualifications. By offering an apprenticeship program, you can attract and retain talented individuals who are committed to growing with your company.

There are several benefits of apprenticeships for employers, including:

Developing a skilled workforce: Apprenticeships provide a structured training programme that helps employers develop a highly skilled workforce that can meet the specific needs of their business.

Cost-effective training: Apprenticeships offer a cost-effective way of training staff as they are partially funded by the government, reducing the overall cost of training for the employer.

Improved productivity: Apprenticeships help to improve the productivity of businesses by providing a skilled and motivated workforce that can contribute to the growth of the company.

Tailored training: Apprenticeships can be tailored to meet the specific needs of a business, ensuring that the training is relevant and beneficial to the employer.

Loyalty and retention: Apprenticeships can help to increase staff loyalty and retention, as apprentices are more likely to stay with a company that has invested in their training and development.

Meeting skills gaps: Apprenticeships can help employers address skills gaps in their workforce, ensuring that they have the skills and knowledge needed to succeed in a rapidly changing business environment.

Overall, apprenticeships offer significant benefits to employers, helping them to develop a skilled and motivated workforce that can contribute to the long-term success of their business.

The role of a training provider is…

To provide off-the-job training, knowledge sessions and practical skills while assessing apprentices’ progress towards achieving their qualifications.

The training provider will support the employer by ensuring that each apprentice receives:

• An induction programme on commencement.
• A detailed training plan (including on and off-the-job training).
• Regular progress reviews.
• Opportunities to put into practice off-the-job learning in line with your business and apprenticeship requirements.
• Mentoring and general support throughout the apprenticeship.

This will be set out in an Apprenticeship Agreement, a commitment statement signed by the training provider, the apprentice and the employer.