Glossary
Co-investment
Where the government pays all or most of an apprenticeship's cost because the employer does not pay the levy or has run out of levy funds.
In full
For apprenticeships starting from 1 August 2026, the split depends on the apprentice's age at the start of training. For 16 to 24-year-olds the government pays 100%, up to the band maximum, and the provider must not ask the employer for a contribution. For apprentices aged 25 or over, the government pays 95% if the employer does not pay the levy, and 75% if the employer is a levy payer who has run out of funds.
Whatever the age, the employer pays the whole of any amount above the band maximum. Employer-providers do not co-invest (apprenticeship funding rules 2026 to 2027, paragraphs 213 to 215.3).
Where this comes up
diagnostic
Recording co-investment payments
Recording co-investment payments. Review areas: Payment records.
diagnostic
An apprentice is on the ILR but is not generating any payments
The apprentice is not funding: they exist on the ILR and look correct, but no earnings are being generated for them. For apprenticeships starting from 1 August 2026 the provider enters the details once, on the ILR, and no payment is made until the employer approves them in their apprenticeship service account. For apprenticeships that started earlier, the ILR and the apprenticeship service must still match, so a difference between them stops payment.
scenario
An employer agrees a price above the band maximum
A negotiated price sits above the funding band maximum for the standard. Who pays the difference, and what is recorded?
module
Apprenticeship funding: price, band, service and evidence
A price negotiated with each employer, capped by the band maximum, paid monthly with a completion element, and dependent on the ILR and the apprenticeship service agreeing.