Co-investment explained

Not every apprenticeship is fully covered by apprenticeship funding. When the cost of an apprenticeship is higher than the available funding, employers may need to make a contribution towards the remaining cost. This is known as co-investment.

For schools and trusts, understanding how co-investment works can help you plan apprenticeship programmes and make better use of available funding.

What is co-investment?

Co-investment is the contribution an employer makes towards the cost of apprenticeship training when available funding does not cover the full amount.

The amount you contribute depends on factors such as the apprenticeship standard, its funding band and your organisation's circumstances.

When might you need to pay?

Co-investment can apply when an employer does not have sufficient levy funding available to cover the full training cost, or where the agreed training cost exceeds the relevant funding available.

Understanding the funding position before starting an apprenticeship can help avoid unexpected costs later.

What does this mean for schools?

For schools and trusts, co-investment should be considered alongside your wider apprenticeship and workforce plans.

Before choosing a programme, it can be useful to check:

• Available funding — How much apprenticeship funding do you have?

• Training costs — Does the programme sit within its relevant funding band?

• Your contribution — Will your school or trust need to contribute towards the cost?

Make funding part of the decision

The cheapest apprenticeship isn't necessarily the right one, and the highest-funded programme isn't automatically the best fit either.

The key is understanding how the available funding, training programme and workforce need fit together.

With a clear view of co-investment, schools and trusts can make more confident decisions about which apprenticeship opportunities to pursue and how to fund them.