The apprenticeship Levy is powerful tool aimed at helping organisations develop their workforce through funded training. However, many businesses are unaware of their funding entitlement and apprenticeship levy funds go unused. In this article LMP Education will breakdown the Apprenticeship Levy and discuss important upcoming changes employers need to know about.
What is the apprenticeship levy
Apprenticeships are funded via the Apprenticeship Levy. Many organisations face challenges in understanding the levy and apprenticeship funding complexities.
Levy facts
• Requires large employers with a wage bill over £3 million to contribute 0.5% of their total payroll.
- Funds collected are allocated for apprenticeship training.
- The levy is paid into a central digital apprenticeship service (DAS) account that employers can access.
- Funding is available for new and existing employees age 16+ (no upper age limit).
- Training must be delivered by an approved training provider, such as LMP Education.
- Apprenticeship levy funds expire after 24 months and then they are returned to the government.
Upcoming changes to the apprenticeship levy
From April 2026 there will be major changes to the apprenticeship levy. These changes include:
- Levy Fund Expiry: Levy funds will now expire after 12 months, down from 24, requiring faster utilisation.
- Increased Co-investment: Employers will pay 25% of training costs (up from 5%) once levy funds are used, with the government covering the rest.
- Removal of the 10% top-up: The government’s monthly top-up will be withdrawn. Employers will only be able to access the value of their own contributions.
- SME Support: Full funding for 16-24-year-olds in SMEs, expanding from previous age limits.
- Growth & Skills Levy: short course “apprenticeship units” and foundation apprenticeships will become available from April 2026, enabling employers to address skills needs without committing to full apprenticeship programmes.
LMP Education Levy Support Team
LMP Education has a team of apprenticeship levy experts who can provide advice and guidance in getting the best out of the levy. We can help with integrating apprenticeships into the organisations overall staff development and talent acquisition strategies. Apprenticeships can be used to develop talent as part of a People and Talent Strategy and also for Continued Professional Development.
Join our LIVE webinar: Maximise your apprenticeship levy – free levy audit and advice for employers
Join LMP’s live webinar to discover more about funded training programmes, apprenticeships, the apprenticeship levy, talent attraction and apprentice recruitment.
- Date: Friday 13 February
- Time: 11:00 am
- Who this webinar is for: This employer event is for business leaders, school leaders, directors or managers, HR managers, HR directors, roles recruiting and managing apprentices.
- Registration link: https://us06web.zoom.us/webinar/register/WN_XoEjkbJwShO2VL7_yQStQA#/registration
Dates for your 2026 diary:
January 2026
February 2026
- Further details on Apprenticeship Units*
- Information on streamlining apprenticeship standards*
- Details of the next wave of Foundation apprenticeships*
- System changes worked examples*
- National Apprenticeship Week
- Top Apprenticeship Employers 2026 open for applications*
March 2026
- Draft Apprenticeship Funding Rules 2026 to 2027*
April 2026
- Apprenticeship Units delivery begins*
- Further detail on MSA Brokerage*
- Applications open for National Apprenticeship and Skills Awards 2026
May 2026
- Apprenticeship Funding Rules 2026 to 2027 published
June 2026
- Top Apprenticeship Employers 2026 announced
August 2026
- System changes announced at Budget come into effect
- Apprenticeship Funding rules 2026 to 2027 come into effect
October 2026
November 2026
Thank you for your continued support. *dates to be confirmed
Register for our levy webinar
