Your Annual Pay Bill

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Funding at a glance · the difference

Two products. Two funding rules. Both fully funded for the right path.

TESS Group offers two distinct kinds of AI training. They use different government funding rules — both legitimate, both well-established. Here’s what your CFO needs to see.

Full apprenticeships

L3 / L4 / L5 / L6 / L7 apprenticeship programmes

12–24 month full apprenticeship programmes (e.g. AI & Automation Practitioner L4, AI Leadership L5).

  • Levy payers (£3m+ paybill): drawn directly from your Apprenticeship Levy digital account.
  • SMEs / non-levy: 95% government-funded, 5% employer co-investment.
★ AI Apprenticeship Units

Level 5 AI Units (AU0009 / AU0010 / AU0011)

30-hour Skills England units, £750/unit — AI Strategy & Opportunity, AI Adoption & Governance, AI Delivery & Transformation.

  • Levy payers: drawn directly from your Apprenticeship Levy digital account.
  • SMEs / non-levy: 100% government-funded — no co-investment, no 5%, nothing to find from your budget.

Common Questions

How is the apprenticeship levy calculated?

The levy is 0.5% of your total annual pay bill. Every employer gets a £15,000 annual allowance, so you only start paying when your payroll exceeds £3 million. The levy is collected monthly via PAYE.

What if I don't use my levy?

From April 2026, unused funds expire after just 12 months on a first-in, first-out basis (previously 24 months). The money simply disappears. The government has also removed the 10% top-up on levy contributions. AI and data apprenticeships are among the highest-value ways to use your levy before it expires.

Can I use my levy for existing employees?

Yes. Apprenticeships aren't just for new hires. You can enrol existing employees at any age on programmes like the Level 4 AI & Automation Practitioner. This is often the most impactful use of your levy.

We're not a levy payer. Can we still access funding?

Yes. Enter a payroll under £3 million above and you'll see the non-levy calculator with your 5% contribution for each programme. The government pays 95%, you'd typically pay just £350–£1,100 for a full 18–24 month AI programme. For employers with fewer than 50 staff taking on 16–18 year olds, it's 100% funded.

Want to understand the full picture?

Our in-depth guide covers everything from levy transfers and funding bands to the April 2026 changes, incentive payments, and how to check your Digital Apprenticeship Service balance.

Read: Apprenticeship Levy Explained →