Each apprenticeship standard constitutes a specification for training in a particular industry and role, which should help prepare learners for employment in that area. These standards are assigned funding caps, which represents the maximum amount of money that the ESFA will release via funding.
Training providers are able to agree an overall cost (the Total Negotiated Price or TNP) with employers. The TNP can exceed the funding cap, but the employer must pay this excess themselves. Apprenticeship funding is paid through a combination of levy payments, government contributions, and direct employer payments.
For a worked example of the different payment mechanisms, see the guidance article How Does Apprenticeship Funding Work?