The 2026 Growth and Skills Levy changes do not all begin on the same date. Approved apprenticeship units became available from 28 April, while the shorter expiry period, removal of the top-up on new funds and revised co-investment routes apply from 1 August 2026. This guide gives training providers start-date-aware employer talking points.
Updated: 15 July 2026. Check the rule version and product page applying to each actual start.
Most employers have heard "there's a new levy" but are confused about what it means for them. Here is the clear version you can share or adapt.
| What employers know | Correct 2026 position |
|---|---|
| Levy called the "Apprenticeship Levy" — paid by employers with payroll over £3m | The levy charge and £15,000 annual allowance continue, but the 10% top-up is removed from new funds entering accounts from 1 August 2026. |
| Unspent funds expire after 24 months | Funds entering on or before 31 July 2026 retain the 24-month treatment. New funds entering from 1 August expire after 12 months. |
| Levy can only fund full apprenticeship programmes | Approved apprenticeship units can be funded under their own product and funding rules. Use the live Skills England catalogue; do not market proposed or withdrawn units. |
| One generic 5% / 95% message | For new apprenticeship starts from 1 August: levy-insufficient is 25% / 75%; non-levy age 25+ is 5% / 95%; eligible non-levy age 16–24 is government-funded up to the band. |
| Levy transfer to another employer | The current transfer allowance is 50% of the relevant previous tax year's levy funds and can support eligible full apprenticeships and approved units under the transfer rules. |
This is the single biggest risk facing levy-paying employers in 2026. Use these talking points when reaching out to employer partners.
Opening message
"From 1 August 2026, new funds entering your apprenticeship service account will expire after 12 months and will no longer receive the 10% government top-up. Funds that entered through 31 July keep their existing 24-month treatment. Let’s model both parts of your balance."
If they have a large unspent pot
"Based on your payroll, you are likely accumulating around [£X] per month in levy. If that is not committed to eligible training, it can expire. We can build a realistic start plan around genuine skills needs and reduce avoidable expiry."
If they think they have plenty of time
"The relevant clock starts when each monthly tranche enters the account. Do not apply the new 12-month period to older funds or assume the whole balance has one expiry date."
Offering apprenticeship units as a faster option
"Approved apprenticeship units may provide a shorter option, but each is a separate product with its own role eligibility, delivery hours and funding maximum. We will check the live Skills England page before proposing a unit."
"We already have apprenticeships running — do we need to do anything?"
Earlier starts normally remain on the funding rules applying at their start date, subject to the exceptions in the current rules. Separately, funds entering from 1 August 2026 have a 12-month expiry period and no new 10% top-up.
"We've been stockpiling levy — will that expire now?"
Funds entering on or before 31 July 2026 retain the 24-month treatment for their individual entry date. New funds from 1 August use the 12-month treatment. Check the account rather than estimating.
"What's the difference between the Growth and Skills Levy and the old Apprenticeship Levy?"
The 2026 reforms include approved apprenticeship units and account changes. The 10% top-up is removed for new funds from 1 August, those new funds expire after 12 months, and new-start co-investment has separate 25%, 5% and fully funded routes.
"We don't have the headcount for more apprentices right now."
An approved unit can upskill an existing eligible employee, but it is not a generic short-course budget. Check the product’s age, employment, England-hours, role, prior-learning and funding requirements first.
"Can we just transfer our unspent levy to someone else?"
Yes. The current allowance is 50% of the relevant previous tax year's levy funds. Transfers must be arranged through the apprenticeship service and can fund eligible full apprenticeships or approved units; the receiving employer pays above the applicable maximum.
Work with employer partners to review current unspent balances, monthly levy payments, and when existing funds are due to expire under the old 24-month rule.
Separate starts before and from 1 August. Keep funds entering through 31 July distinct from later funds in expiry and top-up forecasts.
Configure levy-insufficient 25/75, non-levy age 25+ at 5/95, and eligible non-levy age 16–24 as government-funded up to the band.
Check the exact standard version or unit page, funding maximum, learner eligibility and applicable funding rules before agreement and start.
Funds entering in August 2026 can begin expiring after 12 months if unused. Review the service account’s actual dates and committed spend.
0.5% of annual pay bill less the £15,000 annual allowance, subject to connected-employer allocation and the English percentage. No top-up on new funds from 1 August 2026.
12 months for new funds entering from 1 August 2026. Funds entering through 31 July retain the 24-month treatment.
Use the live Skills England catalogue. For example, approved AI leadership units AU0009–AU0011 are Level 5, have at least 30 delivery hours, a £750 maximum and product-specific leadership criteria.
For new apprenticeship starts from 1 August: age 25+ is 5/95; eligible age 16–24 is government-funded to the band. April–July unit rules are different.
TIQ-plus gives training providers real-time visibility of levy utilisation across all employer partners — so you can flag expiry risk, plan starts, and demonstrate value before funds are lost.