The Growth and Skills Levy is a powerful tool which can be used for strategic workforce development. Through strategic levy planning organisations can enhance their workforce, supporting workforce transformation, leadership development and future skills needs. However, many levy-paying organisations are missing opportunities to maximise apprenticeship funding. In this article we will cover how you can make your Growth and Skills Levy work harder while using the power of apprenticeships.
Common misconceptions around levy funding
Apprenticeships and government funded training programmes are an often-misunderstood – here are some of the most common misconceptions and how to address these.
You must hire new staff to use the levy
While hiring new staff through apprenticeships is a fantastic way to make use of a range of employer incentives, apprenticeships are available for existing staff as well. Using apprenticeships as part of your CPD strategy helps to boost employee retention and develop internal skills and talent.
Apprenticeships are only entry level roles
Apprenticeships are often viewed as a means to enter the workforce being offered only to individuals in entry level positions. However, apprenticeships come in a range of qualification levels, allowing anyone to utilise them for professional development from entry level to management.
Unused funds sit in your account forever
While paying into the levy can seem like paying into a savings account to be used for development at any stage, monthly levy contributions carry a strict 12-month expiry window. If left unspent after two years, the oldest funds quietly return to the government treasury.
How levy funds can be used for existing employees
To ensure your organisation’s levy fund do not go unspent, adding a levy spent plan to your existing staff development strategy is crucial for reducing unspent levy and improving the return on investment of the funds. This can be done in a number of ways:
Aligning apprenticeship programmes with workforce planning
Treat apprenticeships as another tool to support your organisation’s existing workforce plan. Look through the goals for the coming year whether it’s recruiting new staff or developing existing employees and search for relevant apprenticeship programmes that can be used to fill those needs. Apprenticeships should form part of every workforce planning discussion, not simply a recruitment conversation.
Building leadership and specialist capability through funded training
Many apprenticeship programmes focus on developing specialist skills, helping your organisation in developing strong internal capabilities and leadership. Apprenticeships such as Level 3 HR Support, Level 3 Business Operations Administrator, Level 3 Coaching Learning and Development Practitioner, and Level 3 Assistant Accountant provide CPD and career progression for current staff members.
Preparing for future skills needs and organisational growth
By investing in the development of new skills within your teams, you can future proof your organisation and help prepare for organisational growth. New programmes such as the Level 2 Administration Assistant programme provides opportunities to employ a local young person (16-24) who may be not in education, employment or training.
About LMP Education
LMP Education is an award-winning apprenticeship training provider offering range of funded training solutions for businesses across a variety of sectors. We support organisations in upskilling their staff through apprenticeship training programmes.
To learn more about funded training programmes and apprenticeships download the free Employer Guide to Apprenticeships 2026
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