When does the 12-month levy fund expiry take effect?

The new 12-month expiry rule takes effect from April 2026. Funds that enter your Digital Apprenticeship Service account from April 2026 onwards will expire after 12 months if unspent, replacing the previous 24-month expiry window. This makes planning apprenticeship starts and training commitments even more time-critical.

What are apprenticeship units and can I fund them with levy?

Apprenticeship units are shorter, standalone training modules (30–140 hours) launching from April 2026 under Skills England. They cover areas including AI, digital skills, and engineering. Levy funds can be used to pay for approved apprenticeship units — they count toward your pot spend alongside full apprenticeships. Unlike full apprenticeships, units are assessed via a Skills Test rather than an EPA.

What happens to my unspent levy after 12 months?

Unspent funds are returned to HM Treasury after the expiry window passes. With the new 12-month window from April 2026, employers with large levy pots who are slow to commit starts or training purchases will lose funds faster than before. Active spend planning — including considering apprenticeship units for shorter-cycle spend — is essential.

Growth and Skills Levy planner 2026

Model your annual levy pot, calculate the impact of the new 12-month fund expiry (effective April 2026), and plan spend across full apprenticeships and shorter apprenticeship units. Built for UK employers and training providers navigating the transition from the Apprenticeship Levy to the Growth and Skills Levy.

Your levy details

Annual pay bill (£) Total gross wages and salaries paid to UK employees.

Existing unspent pot in DAS (£) Funds already in your Digital Apprenticeship Service account. These may be at risk under the new 12-month expiry if they entered before April 2025.

Planned apprenticeship starts (next 12 months)

Average funding band per apprentice (£) Check the government's funding band table for each standard. Common bands: Level 3 apprenticeships £6,000–£12,000; higher level £12,000–£27,000.

Planned apprenticeship units (April 2026+) Shorter units (30–140 hrs) launching from April 2026. Typical cost £1,500–£4,000 per learner per unit.

Average unit cost per learner (£)

Levy pot summary

Annual levy payable —

Monthly levy + top-up —

12-month pot available —

Planned apprenticeship spend —

Planned units spend —

Unspent pot (at risk) —

12-month spend plan

Under the new 12-month expiry rule (April 2026), each monthly payment into your DAS account expires 12 months later. The table below shows your projected pot balance and expiry risk by quarter.

Balances are projections based on your inputs. Actual DAS balance depends on claim timing, training cost phasing, and any transfers in or out.

What changed: levy to Growth and Skills Levy

Same levy rate: 0.5% of your pay bill above £3m. The 10% government top-up continues.
New 12-month expiry (from April 2026): Funds entering your DAS account from April 2026 will expire after 12 months — down from 24 months. This roughly halves the time employers have to commit spending.
Apprenticeship units (from April 2026): Shorter, standalone modules (30–140 hours) in areas like AI, digital, and engineering can now be funded from your levy pot. Assessed via Skills Test, not EPA.
Broader eligible spend (phased): Skills England is expanding the range of training that qualifies — beyond full apprenticeships. Guidance on additional eligible training types is expected through 2026.
Non-levy employers: The co-investment rate (5% employer / 95% government) for non-levy employers continues. Access to apprenticeship units is also being extended to non-levy employers.

Frequently asked questions

What is the Growth and Skills Levy?

The Growth and Skills Levy is the rebrand of the Apprenticeship Levy under Skills England. From 2025, the levy is broadening to cover additional approved training types — including shorter apprenticeship units from April 2026. The rate and top-up are unchanged.

When does the 12-month expiry rule start?

April 2026. Funds entering your DAS account from that date expire 12 months later if unspent. Existing funds that entered before April 2026 may retain the old 24-month window — check your DAS account for individual entry dates.

What are apprenticeship units and how are they funded?

Apprenticeship units are shorter standalone training modules (30–140 hours) launching April 2026 in areas like AI, digital skills, engineering, and leadership. They are funded from your DAS levy pot — levy payers can use funds directly; non-levy employers access units through the co-investment model.

Can I transfer levy funds to avoid expiry?

Yes — up to 25% of your annual levy pot can be transferred to other employers (e.g. supply chain partners, SMEs) via the DAS. Transfers are a useful safety valve if your own planned starts can't absorb all your levy before expiry.

Manage levy spend across your cohort in real time

Prentice by TIQPlus gives training providers and employer teams live visibility of levy utilisation, programme progress, and funding band compliance — so you never lose a pound of levy to expiry.

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