Degree apprenticeships offer students the chance to earn a degree without the financial burden of tuition fees.
Unlike traditional university degrees, where students may accumulate significant student debt, degree apprenticeships are fully funded through a combination of government funding and employer contributions.
This guide explains how degree apprenticeships are funded, who pays for them, and what financial support apprentices receive.
Who Pays for a Degree Apprenticeship?
The cost of a degree apprenticeship is covered entirely by:
- The employer – Covers a significant portion of the tuition fees through the Apprenticeship Levy (or direct funding for smaller businesses).
- The government – Contributes to funding for eligible apprenticeships.
The student enrolled on the degree apprenticeship pays nothing towards tuition fees.
Unlike traditional university students, degree apprentices do not take out student loans to pay for their education.
How Tuition Fees Are Covered
Degree apprenticeship tuition fees (which can be up to £27,000 for a full course) are covered through two main funding routes:
1. Large Employers & the Apprenticeship Levy
- Employers with a payroll over £3 million pay a 0.5% Apprenticeship Levy to fund apprenticeships.
- This money is used to cover the cost of training and tuition fees for apprenticeships.
- If an employer doesn’t use their levy funds, the government redistributes them to other companies.
2. Smaller Employers & Government Co-Funding
- Employers with a payroll under £3 million do not pay the Apprenticeship Levy.
- Instead, the government covers 95% of the training costs, and the employer contributes the remaining 5%.
- Some small employers may qualify for full government funding, especially if the apprentice is aged 16–18 (or 19–24 with additional eligibility criteria).
What Financial Support Do Degree Apprentices Get?
Degree apprentices earn a salary while they study, but they do not qualify for traditional student finance (such as maintenance loans). However, they may receive financial support in other ways:
- Apprentice Salary – Degree apprentices are paid a salary by their employer (which is covered by an apprenticeship minimum wage).
- No Student Loan Debt – Tuition fees are fully covered, meaning no repayment burden after graduation.
- Employee Benefits – Some apprentices receive perks such as travel expenses, company bonuses, or subsidized accommodation.
- Additional Government Incentives – Employers can receive funding for hiring young apprentices, which may lead to additional support for the apprentice.
Are There Any Costs for Apprentices?
While tuition fees are covered, apprentices may still need to budget for:
- Living Costs – Rent, food, and daily expenses are covered by their salary rather than a student loan.
- Travel Expenses – Commuting to work and university may not be reimbursed by all employers.
- Study Materials – Some courses may require textbooks, software, or equipment.
However, many employers support apprentices with extra financial help or cover costs such as travel and materials.
Final Thoughts
Degree apprenticeships are an excellent debt-free alternative to university, funded entirely by employers and the government. Apprentices earn a salary while gaining practical experience and a degree, making it a financially attractive option for students.
If you’re considering a degree apprenticeship, check out hundreds of vacancies right here on apprenticeship.degree.