From April 2026 the Apprenticeship Levy is being transitioned into the new Growth & Skills Levy. With the date of changes moving closer, we have compiled everything you need to know about the upcoming changes to the levy.

What is the apprenticeship levy

Apprenticeships are funded via the Apprenticeship Levy, soon to be called Growth & Skills 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.

What is the Growth & Skills Levy

Replacing the existing apprenticeship levy framework, The Growth and Skills Levy provides a more flexible offer to employers and learners.

It will help people learn new, relevant high-quality skills at work and fuel innovation in businesses across the country.

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  • Removal of the 10% top-up: The government’s monthly top-up will be withdrawn.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.

Key dates in 2026:

March 2026

  • Draft Apprenticeship Funding Rules 2026 to 2027*

April 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

*dates to be confirmed

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.

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