Funding· 6 min read

How co-investment works, and changes month to month

Co-investment sounds simple in theory. In practice, employer contributions can move up and down each month depending on apprentice ages, start dates and any levy transfer you are drawing from. This explainer maps how the maths actually plays out across a school year.

A hand pointing to a printed funding chart on a meeting-room table

The four funding categories to know

Levy payer. The employer pays 0.5% of payroll into a levy account, then draws from it to fund training.

Non-levy payer. The employer contributes 5% of the training cost while government covers 95%.

Levy transfer. 100% of the training cost is covered by a third-party levy donor, for example a MAT or local authority.

0% co-investment. Applies to apprentices aged 16 to 21, extended to age 22 from April 2024. No employer contribution required.

How the same school can pay different amounts each month

Imagine a small school starting one apprentice a month over the autumn term. The employer bill can look completely different depending on the standard, the apprentice's age and whether a levy transfer is in place.

September. A Teaching Assistant apprentice aged 19, no transfer available. The school pays a 5% contribution, roughly £300 spread across the programme.

October. An Early Years Educator apprentice aged 19, funded by a levy transfer. The school pays £0 because the transfer covers the full cost.

November. A Learning Mentor apprentice aged 22, no transfer required. The school pays £0 because the age-based exemption applies.

December. A School Business Manager apprentice aged 34, funded by a levy transfer. The school pays £0 because the transfer covers the full cost.

Key insights for schools

Always check the apprentice's age at the start of the programme. This determines whether the age-based exemption applies.

Plan apprentice start months around funding conditions and your own budget cycles.

Work with a levy transfer partner where possible to eliminate the co-investment cost entirely.

The point is not that co-investment is complicated for its own sake. It is that a small amount of upfront planning can turn a projected £1,500 employer bill into zero. That is real money for a school, and it usually comes down to one or two decisions about when and who to enrol.

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Whether you are shaping a business case, comparing providers or planning a trust-wide programme, we will help you get from question to confident decision.

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How co-investment works, and changes month to month

The four funding categories to know

How the same school can pay different amounts each month

Key insights for schools

Talk to the NCE employer team.

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The employer handbook for NCE apprenticeships

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