What help can you get with apprenticeships?

The Apprenticeship Levy has a new name. It is now called the Growth and Skills Levy.  This is part of wider reforms to apprenticeship support and skills funding. 

Several important changes came into effect on 1st August 2026, so let’s take a look at what support you can now get with apprenticeships. 

What is the Growth and Skills Levy? 

Broadly speaking, the Growth and Skills Levy is an additional 0.5% tax on employers with an annual payroll in excess of £3 million (less a £15,000 allowance). These companies then have access to their levy account to fund apprenticeship training (with some extra government support). 

If your payroll is below the £3 million annual threshold, you still get funding support for eligible apprenticeship training, but do not have to pay the levy. 

What are the key changes from August 2026? 

The changes are a mixed bag with some adding cost and removing flexibility and others doing quite the opposite. Their impact also varies depending on whether you pay the levy or not. 

For levy paying employers, the time in which you have to spend your levied funds is reducing from 24 months to 12 months. This quickens the “use it or lose it” dynamic, and may require tighter workforce planning. Another sour note is that the Government is removing the 10% top-up they added to your levy fund. 

Once your levy fund runs out however, the government has traditionally co-funded the balance of training costs at a rate of 95%. For apprenticeships starting after 1st August 2026, this is changing based on the age of the apprentices. Those aged 16 to 24 are now fully funded, whilst those aged 25+ will be funded at a rate of 75%, with you paying the remaining 25%. 

For non-levy paying employers, the time limit reduction and 10% top-up are not relevant. The funding rates share the same now fully funded option for 16–24-year-olds, but for apprentices aged 25+ they remain at 95% funded with you paying the balancing 5%. In some circumstances, you continue to enjoy up to £3,000 in additional incentives, subject to eligibility rules. 

A further significant change is the relaxing of what apprenticeship training qualifies, allowing for a more flexible skills-based system.  

The Growth and Skills Levy introduces shorter training programmes, apprenticeship units in targeted skills areas for existing employees and foundational apprenticeships in areas like retail, hospitality, engineering and construction. 

How can you utilise apprenticeship support in your business? 

It is worth noting that for apprenticeships started prior to these changes, generally the original rules they began with will remain in place. 

There is a clear shove towards taking on younger apprentices, although for those aged 25+ you are still supported considerably. 

The wider application of funding for targeted training will be welcome, and you may consider it for upskilling in a very specific area or for acting as a gateway for the most junior of staff to begin vocational learning with you. 

With this change in the rules, now is a good time to review how you use apprenticeships, or if you have not considered them before, to take a look at what is on offer.  

Keep in mind that while the training is funded, you’ll still need to budget for genuine employment pay (including paying them whilst they are away training), an apprenticeship agreement and liaising with an approved training provider.  

These rules apply in England. Apprenticeship funding arrangements differ in Scotland, Wales and Northern Ireland. 

In Scotland, Skills Development Scotland contributes towards Modern Apprenticeship training and assessment, with funding levels varying by factors such as age, qualification level and sector.

In Wales, apprenticeship training costs are supported through the Welsh apprenticeship programme, with employers working with contracted training providers while remaining responsible for wages and any additional training costs.

Help from The HR Dept 

We can help you review your recruitment strategy, learning and development programme and skills gaps within your business to identify how apprenticeship support would best work for you. To get started, please contact us.