Apprenticeship levy funding rules
How the Growth and Skills Levy works in 2026/27: the twelve-month expiry, the removal of the top-up, co-investment, transfers, and what it means for planning.
What the levy is now
The Apprenticeship Levy became the Growth and Skills Levy. Employers with an annual pay bill above £3 million pay 0.5 per cent, less a £15,000 allowance, and the money appears in a digital account to spend on training and assessment.
Two changes matter more than the name. Funds now expire twelve months after entering the account rather than twenty-four. And the ten per cent government top-up has been removed.
What that means in practice
An employer who previously had two years to commit funds now has one. Money that would once have accumulated while a programme was designed is now lost. Planning that used to be annual has to become continuous.
The practical consequence is that under-spending is now expensive in a way it was not before, and the month in which funds start expiring is worth knowing in advance rather than discovering.
Co-investment and transfers
Where levy funds run out, employers co-invest five per cent, with government paying the rest. Apprentices aged 16 to 24 at non-levy employers are fully funded with no co-investment.
Levy-paying employers can transfer up to 25 per cent of their annual funds to other employers, which is a route worth considering where a surplus would otherwise expire.
Common questions
How long do apprenticeship levy funds last?
Twelve months from entering the account, reduced from twenty-four. Unspent funds expire and cannot be recovered.
Is there still a 10 per cent top-up?
No. The government top-up was removed when the Growth and Skills Levy replaced the Apprenticeship Levy.
What can levy funds be spent on?
Apprenticeship training and end-point assessment. Not wages, travel, equipment or work placement costs.
What has changed recently
Live from the feed. This guide is kept in step with these.
Changed Growth and Skills Levy replaces the Apprenticeship Levy 1 August 2026Track this yourself
Skills Radar follows every change to the funding rules, the standards register and T-Levels, with what changed, what it changed from, and what follows. Free to read.