News
Growth and Skills Levy Reforms: Why Levy-Paying Employers Should Act Now
Published: 8th of June 2026
The Government’s Growth and Skills Levy reforms will change how levy-paying employers access and use Apprenticeship funding. While designed to create a more flexible skills system, the changes could reduce the value of unused levy funds and increase future training costs.
What’s Changing from August 2026?
Key changes for levy-paying employers include:
- Removal of the current 10% government top-up on levy contributions
- Levy funds expiring after 12 months instead of 24 months
- Employer contributions for new Apprenticeship starts increasing from 5% to 25% if levy funds have been exhausted
These changes mean employers will have less time to use their levy funds and could face higher costs in the future.
Why Invest in Apprenticeships Now?
Employers who start Apprenticeships before the reforms take effect can maximise the value of their existing levy funds while developing the skills their business needs.
Benefits include:
- Making full use of current funding arrangements
- Investing in future talent and workforce development
- Addressing skills gaps and succession planning
- Avoiding the loss of unused levy funds
Apprenticeships remain one of the most effective ways to build skills, improve productivity and support long-term business growth.
Partner with Apprenticeships+
Whether you’re recruiting new talent or upskilling existing employees, Apprenticeships+ can help you make the most of your levy investment.
Our specialist team supports employers with anything from workforce planning and recruitment through to enrolment and programme delivery. With a 92% vacancy fill rate and an average time-to-fill of just two weeks, we help employers access the talent and skills they need quickly, connecting them with the right people for their vacancies.
We can enrol Apprentices in as little as five working days, helping you take advantage of current funding arrangements before the reforms take effect.
To discuss your Apprenticeship requirements, contact apprenticeshipsandtraining@sheffcol.ac.uk.
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