Who Pays for a Hospitality Apprenticeship?

Aug 24

9 min read

If you are considering apprenticeships to develop your hospitality team, one of the first questions is likely to be: who pays for a Hospitality Apprenticeship?

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The answer depends on several factors, including whether your organisation pays the apprenticeship levy, the age of the apprentice and whether sufficient levy funds are available.

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For apprenticeships starting from 1 August 2026, eligible apprentices aged 16–24 can have their apprenticeship training and assessment fully funded up to the funding band maximum, including where the employer does not pay the apprenticeship levy. The 2026/27 funding rules also changed the arrangements for levy-paying employers that have insufficient funds in their apprenticeship service account.

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This means the cost of developing hospitality employees through an apprenticeship may be significantly lower than some employers expect.

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Momentous Learning offers both the Level 3 Hospitality Supervisor Apprenticeship and Level 4 Hospitality Manager Apprenticeship, providing structured development for hospitality employees progressing into supervisory and management responsibilities.

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This guide explains who pays for a Hospitality Apprenticeship, how funding works for levy and non-levy employers, and what hospitality businesses should consider when planning employee development.

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Table of Content:

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Who Pays for a Hospitality Apprenticeship?

The cost of a Hospitality Apprenticeship can be funded in different ways depending on the employer and apprentice.

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For apprenticeships starting from 1 August 2026, the main funding scenarios in England are:

Non-levy employer + apprentice aged 16–24: Government funds 100% of eligible training and assessment costs up to the funding band maximum.
Non-levy employer + apprentice aged 25 or over: Government funds 95%, with the employer contributing the remaining 5%.
Levy-paying employer with sufficient funds: Eligible apprenticeship training and assessment is funded through the employer's apprenticeship service account.
Levy-paying employer with insufficient funds + apprentice aged 16–24: Government funds 100% up to the funding band maximum.
Levy-paying employer with insufficient funds + apprentice aged 25 or over: Government funds 75%, with the employer responsible for the remaining 25%.

These rules apply to new apprenticeship starts from 1 August 2026. Different rules can apply to apprentices who started in previous funding years.

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Employers are also responsible for costs above the relevant funding band maximum where the agreed training price exceeds that maximum.

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For hospitality employers, understanding these different routes is important because the amount your organisation actually contributes can vary considerably.

Friends chat and drink beer at a sunny outdoor cafe patio under string lights, with brick walls and green frames.

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Are Hospitality Apprenticeships Fully Funded for 16–24 Year Olds?

For new apprenticeship starts from 1 August 2026, the government funds 100% of apprenticeship training and assessment costs up to the funding band maximum for apprentices aged 16–24 where the employer does not pay the apprenticeship levy.

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The same 100% government funding also applies where a levy-paying employer has insufficient funds in its apprenticeship service account and the apprentice is aged 16–24 at the start of their apprenticeship.

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This is particularly relevant for hospitality employers looking to recruit and develop younger employees.

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For example, a business could identify an employee with the potential to develop into a future supervisor and, subject to eligibility and funding requirements, use a Level 3 Hospitality Supervisor Apprenticeship to provide structured development alongside their employment.

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For employers already thinking about future workforce capability, the funding changes can make apprenticeship development particularly attractive for eligible younger employees.

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How Do Non-Levy Employers Pay for a Hospitality Apprenticeship?

Many hospitality businesses do not pay the apprenticeship levy.

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For new starts from 1 August 2026, non-levy employers can receive substantial government support towards apprenticeship training and assessment.

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The funding position is:

Apprentice aged 16–24: Government funds 100% up to the funding band maximum.
Apprentice aged 25 or over: Employer contributes 5%, while government funds the remaining 95% up to the funding band maximum.

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For apprentices aged 25 or over, the employer agrees a payment schedule with the training provider and pays its contribution directly to the provider.

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Non-levy employers also generally need to reserve apprenticeship funding through their apprenticeship service account unless they are receiving a transfer of levy funds.

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This means a smaller hospitality employer should not automatically assume that apprenticeship training requires the business to cover the full programme cost.

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Government funding can cover either all or a substantial majority of the eligible training and assessment cost, depending on the apprentice's age and circumstances.

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How Do Levy-Paying Hospitality Employers Fund Apprenticeships?

Larger hospitality organisations may pay the apprenticeship levy.

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Levy-paying employers receive funds through their apprenticeship service account that can be used towards eligible apprenticeship training and assessment.

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This can allow hospitality businesses to use available funds to develop employees through programmes such as:

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For employers already paying the levy, the commercial question is therefore not simply:

"How much will apprenticeship training cost?"

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It should also be:

"Are we making effective use of the apprenticeship funds available to us?"

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This is particularly relevant under the 2026/27 arrangements because the previous automatic 10% top-up to levy funds has been removed and levy funds now expire after 12 months rather than 24 months.

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For hospitality employers with significant workforce development needs, planning how levy funds are used can therefore become an important part of the Learning and Development strategy.

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What Happens If a Levy-Paying Employer Runs Out of Funds?

This is an important area because the funding rules changed for new starts from 1 August 2026.

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Where a levy-paying employer does not have sufficient funds in its apprenticeship service account:

For apprentices aged 16–24, government funds 100% of eligible training and assessment costs up to the funding band maximum.
For apprentices aged 25 or over, government funds 75% and the employer is responsible for the remaining 25%.

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This means levy-paying hospitality businesses need to think carefully about both their available levy balance and the workforce groups they plan to develop.

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For example, an employer looking to build a pipeline of future supervisors may have different funding considerations from an employer developing an established manager aged 25 or over.

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Understanding this before employees begin their programmes can help employers budget more effectively.

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Can Levy Funds Be Transferred to Another Hospitality Employer?

Yes. Levy-paying employers can transfer unused apprenticeship levy funds to other businesses.

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Current government guidance states that employers can transfer up to 50% of their unused levy funds to support apprenticeship training and assessment in other organisations.

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This can create another funding route for employers that do not pay the apprenticeship levy.

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A transfer can potentially help cover eligible apprenticeship training and assessment costs up to the relevant funding band maximum.

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For hospitality businesses exploring apprenticeship development, it can therefore be worth considering whether levy transfer opportunities are available alongside standard government funding arrangements.

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What Costs Does Hospitality Apprenticeship Funding Cover?

Government and apprenticeship levy funding is intended to support eligible training and assessment costs associated with the apprenticeship, subject to the applicable funding rules and funding band maximum.

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It is important for employers to understand that this does not mean every cost associated with employing an apprentice is paid by apprenticeship funding.

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The employer remains responsible for the employment relationship and associated employment costs.

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In practical terms, employers should distinguish between:

Apprenticeship training and assessment costs, which may be covered wholly or partly through levy or government funding.
Employment costs, such as the apprentice's wages, which remain an employer responsibility.
Costs above the funding band maximum, which the employer must pay if the agreed price exceeds the maximum available funding.

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This distinction is important when calculating the true cost of a Hospitality Apprenticeship.

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Employers should look beyond the headline programme cost and establish what funding applies to their specific apprentice and organisation.

Woman in a restaurant reads papers while eating salad, with a phone and coffee on the table and empty tables behind her.

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Can Existing Hospitality Employees Receive Apprenticeship Funding?

Apprenticeships are not limited to recruiting new employees.

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Existing employees can also potentially undertake a Hospitality Apprenticeship, provided the relevant eligibility and apprenticeship requirements are met.

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This creates an important opportunity for hospitality businesses because future supervisors and managers may already be working within the organisation.

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For example:

An experienced team member could develop towards greater supervisory responsibility.
A current supervisor could strengthen their leadership and operational capability.
An existing manager could develop broader management skills.
Employees identified through succession planning could receive structured development for future responsibilities.

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Momentous Learning's Level 3 Hospitality Supervisor Apprenticeship provides a development route for employees building supervisory capability.

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For employees progressing into broader management responsibilities, the Level 4 Hospitality Manager Apprenticeship provides a further structured development opportunity.

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For employers, this means apprenticeship funding can potentially support a wider workforce development strategy rather than being viewed solely as funding for entry-level recruitment.

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Why Hospitality Employers Should Look Beyond the Training Cost

The question "Who pays for a Hospitality Apprenticeship?" is important, but cost should not be the only consideration.

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Employers should also consider what the organisation needs to achieve through the development.

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Hospitality businesses frequently need stronger capability around:

Supervisory skills
Leadership
Customer service
Team performance
Staff retention
Operational effectiveness
Internal progression
Succession planning
Future management capability

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Recruiting externally every time a supervisory or management vacancy appears can be expensive and does not guarantee that the new employee will understand the organisation's culture, customers or operating environment.

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Developing existing employees creates another option.

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An employee may already understand the business but need structured development to become a stronger supervisor or manager.

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In that situation, apprenticeship funding can help employers invest in the capabilities the business needs while the employee continues applying their development in the workplace.

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Choosing the Right Hospitality Apprenticeship

Funding is valuable only when the programme itself is appropriate for the employee and the organisation.

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Momentous Learning offers two hospitality apprenticeship routes designed for different stages of development.

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Level 3 Hospitality Supervisor Apprenticeship

The Level 3 Hospitality Supervisor Apprenticeship is designed for employees developing supervisory and first-line leadership capability.

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It can support employees who are beginning to take greater responsibility for teams, customer service and day-to-day hospitality operations.

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Level 4 Hospitality Manager Apprenticeship

The Level 4 Hospitality Manager Apprenticeship supports employees developing broader management capability.

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It can be relevant to hospitality employees taking greater responsibility for people, performance and operational delivery.

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Both programmes allow development to happen alongside employment, helping learners connect their development to real workplace responsibilities.

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For employers, choosing the correct programme should therefore begin with the employee's current role, existing capability and what the organisation needs them to develop next.