01
Levy funds now expire sooner
For levy-paying employers, new funds entering the apprenticeship service account from August 2026 expire after 12 months rather than 24 months.
Growth and Skills Levy
What employers need to review now.
The Growth and Skills Levy is changing how employers should think about apprenticeship funding, expiry, co-investment and the skills products available through the system.
England guidance. Information checked 6 October 2026 against current GOV.UK funding policy and rules.
The 2026 position
The funding rules have materially changed.
The Growth and Skills Levy builds on the apprenticeship levy but introduces a more flexible skills offer alongside significant changes to how employer funding works.
For employers, the practical issue is not the name change. It is whether levy income, expiry, learner age, co-investment, provider capacity and workforce priorities are being planned together.
Key changes
Five changes employers should understand.
These are the changes most likely to affect funding forecasts, apprenticeship planning and the timing of employer decisions.
02
The automatic 10% top-up has ended
The government no longer adds the automatic 10% top-up to new levy funds entering employer accounts from 1 August 2026.
03
Younger apprentices can attract full funding
For new starts from 1 August 2026, government funds apprenticeship training and assessment up to the funding band maximum for eligible 16 to 24 year olds when a non-levy employer is funding the apprenticeship, or when a levy-paying employer has insufficient funds.
04
Co-investment changed for older apprentices
For new starts from 1 August 2026, a levy-paying employer with insufficient funds is responsible for 25% of eligible training and assessment costs for apprentices aged 25 or over, with government contributing 75% up to the funding band maximum.
05
The levy is becoming more flexible
The Growth and Skills Levy builds on the apprenticeship levy and supports a broader skills offer, including full apprenticeships, foundation apprenticeships and apprenticeship units where available.
Employer response
Move from levy balance management to workforce planning.
A shorter expiry window increases the cost of weak planning. Levy forecasts should now sit alongside hiring plans, workforce priorities, learner demand and realistic provider capacity.
Employers should identify the roles and capability gaps that matter first, then test whether apprenticeships, foundation apprenticeships or apprenticeship units are suitable routes.
MPR Consulting helps employers review the funding position, prioritise workforce opportunities, compare suitable providers and turn the available routes into a practical plan.
Employer questions
Growth and Skills Levy FAQs.
Is the Apprenticeship Levy now the Growth and Skills Levy?
The government is transforming the apprenticeship levy into the Growth and Skills Levy. Employers should expect both terms to remain visible during the transition, while current funding rules and the apprenticeship service continue to govern how funding is used.
How long do levy funds last from August 2026?
For levy-paying employers, new funds entering the apprenticeship service account from August 2026 expire after 12 months. Employers should therefore review forecast contributions, planned starts and likely expiry more frequently.
What happens if a levy-paying employer runs out of funds?
For new apprenticeship starts from 1 August 2026, government funds 100% of eligible training and assessment costs up to the funding band maximum for apprentices aged 16 to 24. For apprentices aged 25 or over, government contributes 75% and the employer contributes 25%.
Can non-levy employers still access apprenticeship funding?
Yes. For new starts from 1 August 2026, government funds eligible apprenticeship training and assessment costs up to the funding band maximum for apprentices aged 16 to 24. For apprentices aged 25 or over, the standard government contribution is 95%, with the employer contributing 5%.
What should employers review now?
Start with expected levy income, current account balance, likely expiry, planned apprenticeship starts, workforce priorities and provider capacity. The objective is to match funding decisions to genuine capability needs rather than simply trying to spend an account balance.
Official sources
Check the current rules before acting.
Funding policy can change. MPR uses current government guidance when advising employers, and the official rules take precedence over any summary on this page.