The Growth and Skills Levy: three financial changes that matter
The rebrand is cosmetic. The changes underneath it are not.
The Apprenticeship Levy has been reworked as the Growth and Skills Levy, and three mechanical changes arrive with it that directly affect what employers can spend.
First, expiry. Levy funds used to sit in an account for 24 months before expiring. New funds now expire after 12 months. Funds already in an account before the change run on the old 24-month clock, so most employers are temporarily managing two expiry timetables at once.
Second, the top-up. Government previously added 10% to monthly levy contributions. That top-up has been removed on new funds, so employers now access only the value of what they actually paid in.
Third, co-investment. When a levy payer exhausted their balance, they previously contributed 5% of further training costs with government paying 95%. That employer share rises to 25%, with government at 75%.
What it changed from: a system where unspent levy was common and the cost of over-committing was low. What it changed to: one where underspending destroys money faster and overspending costs five times what it did.
What follows: levy forecasting stops being an annual exercise and becomes a rolling one. Employers who historically let funds lapse now lose them within a year. Employers who routinely exceed their balance face a materially larger bill and should model 2026/27 spend before committing to new cohorts. There is a partial offset — the wider Growth and Skills Levy allows shorter units and non-apprenticeship training to be funded, giving more ways to use a balance before it expires.