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Apprenticeship Levy Changes Coming in August 2026. What Employers Need to Know!
Published: 12th of March 2026
Key Changes from 1st August 2026
Under the new system:
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Levy-paying employers who have used all their levy funds will see their co-investment contribution increase from 5% to 25% for Apprenticeship training.
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Levy funds will expire after 12 months, rather than the current 24 months, meaning employers will need to plan and use their funding more quickly.
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The 10% government top-up on levy funds will be removed, reducing the overall value of funds available in employer digital accounts.
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Small and medium-sized businesses (SMEs) recruiting Apprentices aged 25 and under will benefit from fully funded training.
Why should employers consider hiring an Apprentice now?
Although the new system will offer greater flexibility, the funding changes mean some employers could face higher training costs once the new rules are introduced.
Employers who enrol an Apprentice with The Sheffield College before August can still access the current funding model, where many organisations contribute just 5% towards apprenticeship training costs.
Starting now allows employers to:
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Secure the current 5% employer contribution rate
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Make the most of existing Apprenticeship funding
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Invest in developing skilled talent within their organisation
Start Your Apprenticeship Journey with Apprenticeships+ today!
Apprenticeships remain one of the most effective ways for employers to build skills, increase productivity and develop future talent. If you are considering recruiting a new Apprentice or upskilling an existing member of staff, now is a great time to get started.
Enrol an Apprentice with us before August to benefit from the current funding arrangements. We can enrol your Apprentice in as little as 5 working days.
Contact our team to get started or to find out more information: apprenticerecruitment@sheffcol.ac.uk
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When applying for an Apprenticeship, it’s important to stand out and present yourself in the best possible way to succeed in a competitive field. The following tips from our team of experts will help you stay organised, stand out to employers, and increase your chances of securing an Apprenticeship that suits your goals. -
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