The Apprenticeship Levy has been rebranded to the Growth and Skills Levy — and April 2026 brings two changes that every employer needs to understand: a new 12-month fund expiry and the launch of shorter apprenticeship units. This guide gives training providers the plain-English messaging, talking points, and objection-handling scripts to explain these changes to employer clients before they lose funds or miss opportunities.
Published: March 2026. Based on Skills England and ESFA guidance current as of publication date.
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 | What has changed from April 2026 |
|---|---|
| Levy called the "Apprenticeship Levy" — paid by employers with payroll over £3m | Now called the "Growth and Skills Levy." Same rate (0.5%), same threshold, same 10% government top-up. The name has changed; the bill hasn't. |
| Unspent funds expire after 24 months | From April 2026, new funds entering the DAS account expire after 12 months. Employers now have half the time to commit spend — urgency has doubled. |
| Levy can only fund full apprenticeship programmes | From April 2026, levy can also fund apprenticeship units — shorter modules (30–140 hours) in AI, digital, leadership, and green skills. Faster to deploy than a full programme. |
| Non-levy employers pay 5% co-investment, government pays 95% | No change to co-investment rate. Non-levy employers can also access apprenticeship units from April 2026. |
| 25% transfer allowance to supply chain | Transfer rules unchanged. Still a valuable option for large levy payers with unspent funds. |
This is the single biggest risk facing levy-paying employers in 2026. Use these talking points when reaching out to employer partners.
Opening message
"I wanted to flag an important change to your levy account before April. From 1 April 2026, any new funds entering your Digital Apprenticeship Service account will expire after 12 months — not 24. If you have been accumulating unspent funds, now is the time to plan how to commit them."
If they have a large unspent pot
"Based on your payroll, you are likely accumulating around [£X] per month in levy. If that isn't being committed to active apprenticeships, it will start expiring under the new rules. We can help you build a start plan that ensures none of that funding goes back to the Treasury."
If they think they have plenty of time
"The 12-month clock starts the month funds enter the account — so from April, every monthly payment begins a new countdown immediately. There is no grace period to build up a buffer and spend it later."
Offering apprenticeship units as a faster option
"If your hiring pipeline can't absorb full apprenticeships quickly enough, from April there is another option: apprenticeship units. These are shorter funded modules — 30–140 hours in areas like AI, digital skills, and leadership — that can be deployed faster and still count against your levy pot."
"We already have apprenticeships running — do we need to do anything?"
Your existing apprenticeships are not affected. But any new levy funds entering your account from April 2026 will have a 12-month expiry window — so if you have planned starts later in the year, make sure they are committed in good time to avoid funds expiring before they're used.
"We've been stockpiling levy — will that expire now?"
Funds that entered your account before April 2026 should retain the 24-month expiry window for their individual entry date. From April onwards, new monthly payments start a fresh 12-month clock. Check your DAS account to see the expiry dates on existing balances.
"What's the difference between the Growth and Skills Levy and the old Apprenticeship Levy?"
The rate, threshold, and top-up are unchanged — it is largely a rebrand under Skills England. The practical differences are the shorter expiry window from April 2026 and the ability to use levy funds for apprenticeship units alongside full apprenticeship programmes.
"We don't have the headcount for more apprentices right now."
That's exactly where apprenticeship units are useful. Units don't require a new hire — they can upskill your existing workforce in areas like AI, digital skills, or leadership. They're shorter, faster to deploy, and funded from the same levy pot.
"Can we just transfer our unspent levy to someone else?"
Yes — up to 25% of your annual levy pot can be transferred to other employers through the DAS. This is a good option if your own planned starts can't absorb all your funds before expiry. We can help you identify transfer opportunities if needed.
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.
Use the talking points above to send a simple update to all levy-paying employer partners. Focus on the 12-month expiry and the opportunity of apprenticeship units. Offer a review call.
If you are delivering any of the 7 initial units, ensure your APAR scope extension is approved, your MIS is ready for the new ILR programme type, and employer agreements are in place.
Run a levy utilisation review with each major employer partner. Flag any employers where new monthly payments are not being committed quickly enough and risk 12-month expiry.
The first new-rule funds (entered April 2026) will expire in April 2027. Employers with slow start pipelines are at risk. Ensure all April–June 2026 funds are committed against active programmes or unit reservations.
0.5% of annual pay bill above £3m. £15,000 annual allowance. Government adds 10% on top. Monthly payments into DAS.
12 months for funds entering DAS from April 2026. Previous 24-month window applies to existing balances.
7 units launching April 2026. 30–140 hours. AI, digital, leadership, green skills. Funded from levy pot. No minimum age.
5% employer co-investment, 95% government. Access to both full apprenticeships and units from April 2026.
Prentice by TIQPlus 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.