Funding in England
Everything you need to know about funding for training in England, including the Growth and Skills Levy (formerly Apprenticeship Levy), Skills Bootcamps, and Adult Skills Funding.
The Political Context
England’s skills policy is driven by a focus on employer needs, technical education, and addressing national skills shortages. Unlike Wales, funding is more varied, with a complex mix of employer contributions, government co-investment, and loan systems.
The political landscape is shaped by several key initiatives:
- Industrial Strategy: Funding is often targeted at priority sectors such as digital, green energy, engineering, and construction.
- Employer-Led System: There is a strong emphasis on putting employers at the heart of the skills system, most notably through the Apprenticeship Levy.
- Skills England: The successor the the Institute for Apprenticeships and Technical Education (IfATE), the establishment of this new body aims to create a more joined-up, long-term plan for the post-16 skills system, linking the needs of industry with training provision.
- Growth and Skills Levy: The government has announced intentions to reform the Apprenticeship Levy into a “Growth and Skills Levy,” which would give employers more flexibility to spend their funds on a wider range of training, not just apprenticeships.
England’s political context shapes the ever-evolving landscape for funding for training in England.
Apprenticeships
Apprenticeships in England are available at Levels 2 – 7, however, across 15 sectors including Digital, Business and Administration and Engineering and Manufacturing. Apprenticeships are skills-based courses, delivered mostly in the workplace, to support employees to become occupationally competent.
In England, apprenticeship funding is primarily managed through the Growth and Skills Levy, formerly the Apprenticeship Levy. It is the key mechanism for providing funding for training in England.
Read more about what organisations the Growth and Skills Levy supports, what apprenticeships and courses it can be used for, and incentives available for hiring an apprentice. Learn about the key changes announced to the Growth and Skills Levy in the 2025/26 academic year.
Skills Bootcamps
Skills Bootcamps are flexible, short-term training courses designed to fast-track individuals into new jobs in high-demand sectors. They can support employers to upskill existing staff for higher level or emerging roles within their organisation.
Skills Bootcamps differ from Apprenticeships and other types of funded training in England due to their flexibility. The Skills Bootcamp curriculum is led by employers and does not need to contain a regulated qualification, allowing it to be more flexible and targeted to employer needs.
Read more about Skills Bootcamps Funding in England, including how employers and individuals can engage with and benefit, how the funding works and what it covers.
Adult Skills Funding and Free Courses for Jobs
The Adult Skills Fund (ASF), which replaced the Adult Education Budget (AEB) in August 2024, is the core government fund for adult (19+) education in England. Its most prominent initiative is the Free Courses for Jobs offer.
- What it is: This scheme provides full funding for eligible adults to take their first full Level 3 qualification (equivalent to A-levels).
- Who is Eligible: The offer is open to any adult aged 19 or over who does not already have a Level 3 qualification.
- Low-Wage Exception: This funding is also available to adults who already have a Level 3 qualification but are earning below the National Living Wage (or are unemployed).
- Available Courses: The funded courses are specifically chosen for their strong links to employment and high-demand sectors, such as digital, health and social care, and construction.
Support your entry-level workforce to enhance their productivity and versatility with Level 2 and Level 3 digital qualifications fully-funded by Adult Skills Funding (ASF).
iungo is currently offering fully-funded courses under the Adult Skills Fund and Free Courses for Jobs in Devon.
Advanced Learner Loans
For individuals who are not eligible for the Free Courses for Jobs offer, Advanced Learner Loans provide a way to finance training.
- What it is: A student loan-style system for learners aged 19 and over to pay for the fees of approved courses at Levels 3, 4, 5, or 6 (e.g., A-levels, Access to HE Diplomas, or higher-level technical qualifications).
- How it Works: The loan is not income-assessed, and there are no credit checks. The loan amount is paid directly to the college or training provider.
- Repayment: Repayments only begin once the learner has finished their course and is earning over a specific income threshold (currently £25,000 per year). Repayments are calculated at 9% of income above this threshold.
- Special “Write-Off” Feature: If an individual takes out a loan to fund an Access to HE Diploma and then goes on to complete a higher education degree, the outstanding balance of their Advanced Learner Loan is “written off” by the government.
Advanced Learner Loans provide a flexible alternative to apprenticeships. Although the employee is liable to fund their training, you can support your employees by giving them time off to complete their course or support their loan repayments.
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