Listen to this story Members can listen to an AI-generated audio version of this article. 1.0x Audio narration uses an AI-generated voice. 0:00 0:00 Become a member to listen to this article Subscribe A fivefold increase in apprenticeship co-investment costs will force employers to cut recruitment, including for young jobseekers, unless ministers rethink the policy, business leaders have warned. From August 1, levy-paying employers that exhaust their growth and skills levy funds will see their contribution towards apprenticeship training and assessment jump from 5 per cent to 25 per cent, with the government’s contribution falling from 95 per cent to 75 per cent. For an employer with an apprentice on a level 3 installation and maintenance electrician apprenticeship, which carries a £23,000 funding band, co-investment will rise from £1,150 to £5,750 over the course of the apprenticeship – a 400 per cent increase Become a member for unlimited access to FE Week subscribe Our members enjoy early access to exclusive content and in-depth articles before anyone else. Get expert journalism on FE and skills, experience fewer ads, and unlock a growing range of member benefits.