Glossary
Co-investment
Last updated
Part of our topic guides on Government-Funded Data & AI Training and Data & AI Apprenticeships.
Co-investment is the slice of an apprenticeship's training cost that an employer pays out of pocket when government funding doesn't cover it in full. For most employers, that slice is 5% of the price — the government pays the other 95% — though the exact split depends on whether you pay the levy, and the age of the apprentice.
Why it matters
Co-investment is the reason cost shouldn't be the thing that stops an employer starting an apprenticeship. On the rates below, a full, five-figure data or AI apprenticeship typically costs an employer only a small fraction of its real value — and for many under-25 hires, nothing at all. We'd rather employers spend that headroom deciding whether the ROLE genuinely needs the training — checking it against the standard's actual knowledge, skills and behaviours, not just a job title — than ruling themselves out on price before they've looked. In our experience, the funding rarely turns out to be the real obstacle; capability and fit are.
How it works
Any apprenticeship start you plan now lands in the 2026-27 funding year (starts from 1 August 2026), so these are the rates to plan against:
- Non-levy employer, apprentice aged 16 to 24 at the start of the apprenticeship: £0 — free to the employer. Government funds 100%.
- Non-levy employer, apprentice aged 25 and over: government pays 95%, you pay 5% — the standard co-investment split.
- Levy-paying employer whose levy funds have run out: government pays 75%, you pay 25% of the training cost. This rate applies whatever the apprentice's age — there's no age carve-out on it.
("Non-levy employer" means your annual pay bill is under £3 million — the threshold that determines whether you pay the levy at all, never a headcount test.)
Before 1 August 2026, the rules run slightly differently: non-levy employers and levy payers with insufficient funds both pay 5% (government 95%), and full funding (100%/0%) applies to apprentices aged 16–21, plus those aged 22–24 with an EHC plan or leaving care.
Either way, an employer that doesn't pay the levy isn't shut out — co-investment and levy transfer (where a larger employer shares up to 50% of its unused levy funds) both give non-levy employers a route to full or near-full funding. Apprenticeship funding rules now sit with the Department for Work and Pensions (DWP), with standards maintained by Skills England.