Co-Investment for a School

As school budgets continue to tighten, leaders are under pressure to stretch every pound. But what if there’s a significant funding opportunity many schools are still overlooking?

One of the most powerful and underutilised strategies is co-investment for apprenticeship training providing access to high quality professional development at minimal cost.

Since its launch in 2017, the Apprenticeship Levy has required employers with a payroll over £3 million to contribute 0.5% of their wage bill into a ring-fenced training fund. Despite this, hundreds of millions of pounds go unused each year and are ultimately returned to the Treasury.

Recent reforms have made it easier than ever for schools to benefit from this funding even where their own levy pot is empty. Through co-investment, schools can continue to access highly effective apprenticeship programmes without bearing the full financial burden.

What Is Co-Investment?

If your school has used up its levy funds or does not pay into the levy you can still access government-funded apprenticeship programmes through the co-investment route.

Co-Investment Rules from 2026–27

The new funding rules introduce a clear age-based structure:

✅ Apprentices aged under 25

100% government funded

Schools pay £0 towards training costs

✅ Apprentices aged 25 and over

Schools contribute 25% of the training cost

Government covers the remaining 75%

This means apprenticeships remain fully funded for young people and early career staff, while still offering exceptional value for upskilling adult staff members at only a fraction of the normal training cost.

Levy Transfers – Keep Apprenticeships Completely Free

Schools can eliminate any co-investment costs entirely by using Levy Transfers.

Large employers including local authorities, dioceses, MATs and major organisations can transfer surplus levy funds directly to schools to fund apprenticeship training in full.

This can cover 100% of programme costs for apprentices of all ages, including those aged 25+, keeping apprenticeships completely free to the school.

The Department for Education maintains a national matching service that connects levy donors with organisations seeking funding:

🔗 Find Levy Transfers via the DfE Apprenticeship Service:

https://transfers.manage-apprenticeships.service.gov.uk/opportunities

Schools can use this service to:

Register as a recipient

Identify potential levy donors

Request full or partial funding for apprenticeship programmes

Recent Funding Reforms That Benefit Schools

The latest apprenticeship funding reforms have further increased flexibility for school settings:

Minimum programme duration reduced eligible standards can be delivered in as little as 8 months rather than 12.

Off the job training hours standardised for each programme reducing administration and simplifying compliance.

Foundation Apprenticeships introduced for young people and those with additional needs including employer incentives of up to £2,000 per learner where applicable.

Greater flexibility for part-time staff no need to extend programme duration based solely on contracted hours.

Recognition of prior learning experienced staff can complete their programmes more quickly, shortening delivery time and reducing opportunity costs.

Real Impact for Schools

Schools already using co-investment and levy transfers report:

Improved recruitment and staff retention

Increased morale through structured development opportunities

Stronger leadership pipelines

High quality CPD aligned to operational priorities

Minimal disruption to teaching timetables

Apprenticeships now represent one of the few development routes that deliver both measurable workforce impact and clear value for money.

Quick Tips to Maximise Funding

✅ Check apprentice age

Under 25: fully funded no school contribution

25+: 25% co-investment, unless levy transfers remove the cost

✅ Secure levy transfers

Partner with a MAT, local authority, or large employer to cover 100% of training fees

✅ Plan ahead

Align programme start dates with staffing plans and academic calendars

✅ Choose experienced providers

Work with providers who are fully compliant with ESFA rules and experienced in supporting the education sector

The Bottom Line

The 2026–27 apprenticeship funding model presents a powerful opportunity for schools:

Develop young talent at zero cost

Upskill experienced staff for just 25% contribution

Use levy transfers to remove costs entirely

Build sustainable workforce pathways without increasing CPD spend

In a financial climate where every investment must justify its impact, co-investment offers schools one of the most effective ways to strengthen teams while protecting budgets.