Apprenticeship Funding & the New Growth and Skills Levy

Navigating the 2025/26 reforms to maximise your training budget and bridge the skills gap.

From April 2026, the Apprenticeship Levy is evolving into the Growth and Skills Levy. This change isn’t just a new name; it’s a fundamental shift in how UK businesses can access and spend training funds. At PTP Training, we help you navigate these changes to ensure your levy works for your bottom line.

Key Funding Rules for 2026

• Levy Payers (Payroll over £3m): You will continue to contribute 0.5% of your pay bill. However, your digital funds will now expire after 12 months (previously 24).

• SME Funding (Non-Levy Payers): Starting August 2026, training for apprentices under the age of 25 is 100% government-funded.

• The 25% Co-Investment Rule: Once your levy funds are exhausted, or for certain adult upskilling, the employer contribution increases to 25% (previously 5%).

Increased Flexibility – The new levy introduces Modular Training Units. You can now use up to 50% of your levy funds for shorter, flexible courses (1–16 weeks) in high-demand sectors like Digital, AI, and Green Energy, rather than committing to a full multi-year apprenticeship for every skill gap.

Support Your Supply Chain – Don’t let your unused funds return to the Treasury. You can now transfer up to 50% of your unspent levy to other businesses. Supporting your suppliers’ training not only strengthens your industry but also qualifies as a strategic business investment.