The Growth and Skills Levy: what changes for providers.

Journey records each apprentice’s employer type, co-investment and price on the funding and ILR record, so a change in the rules shows up where you claim.

What stays the same

HMRC still collects the levy at 0.5% of an employer’s annual pay bill, reduced by a £15,000 allowance across the year. Levy payers can still transfer up to 50% of their previous financial year’s levy funds to other employers, with the English percentage applied.

What changed from 1 August 2026

• New funds entering an apprenticeship service account now expire after 12 months instead of 24. Funds that entered on or before 31 July 2026 keep the 24-month expiry.
• The 10% government top-up on monthly levy contributions has stopped.
• When levy funds run out, the employer contribution for new starts aged 25 or over rises from 5% to 25%, with government paying 75% (para 213.1 of the funding rules). Apprentices already on programme keep the 95% government rate.
• Levy funds can also pay for apprenticeship units, which have their own funding rules.

Standards no longer funded for new starts

From September 2026, 16 standards are no longer funded for new starts of any age: Professional Security Operative, Cleaning Hygiene Operative, Custody and Detention Professional, Facilities Management Supervisor, Learning and Skills Assessor, Team Leader, Security First Line Manager, Public Sector Compliance Investigator and Officer, Improvement Practitioner, Learning and Skills Mentor, Lead Practitioner in Adult Care, Operations Manager, Outdoor Learning Specialist, Coaching Professional, Chartered Manager (degree) and Improvement Leader. Apprentices already on them are funded to completion.

The hiring payment for non-levy employers

From 1 October 2026, non-levy employers can receive a £2,000 apprenticeship hiring payment for eligible new employees aged 16 to 24, paid in two instalments.

What providers should do

• Ask levy-paying employers when their funds expire, because a shorter expiry changes when they want to start apprentices.
• Re-quote co-investment for any employer whose levy account may run out, especially for apprentices aged 25 or over.
• Remove the defunded standards from new-start marketing and check your pipeline.
• Tell non-levy employers about the hiring payment and its conditions.

The free apprenticeship funding calculator shows the split for one apprentice under these rules, with paragraph references.

Primary sources

• Department for Work and Pensions, Growth and Skills Levy reforms factsheet — gov.uk/government/publications/resources-for-promoting-the-growth-and-skills-levy/growth-and-skills-levy-accessible-version-of-gsl-reforms-factsheet (accessed 15 October 2026).
• HM Revenue and Customs, Pay Apprenticeship Levy — gov.uk/guidance/pay-apprenticeship-levy (accessed 15 October 2026).
• Department for Work and Pensions, Transferring apprenticeship service funds — gov.uk/guidance/transferring-apprenticeship-service-funds (accessed 15 October 2026).
• Department for Work and Pensions, Apprenticeship funding rules: August 2026 to July 2027, version 3 — gov.uk/government/publications/apprenticeship-funding-rules-and-assessment-plan-guidance-2026-to-2027 (accessed 15 October 2026).

• When do levy funds expire now?

  Funds entering an account from 1 August 2026 expire after 12 months. Funds that entered on or before 31 July 2026 keep the 24-month expiry.

• Is the 10% top-up still paid?

  No. The 10% government top-up on monthly levy contributions stopped from 1 August 2026.

• What does an employer pay when levy funds run out?

  For new starts aged 25 or over, 25% of the price up to the funding band maximum, with government paying 75%. Apprentices aged 16 to 24 are fully funded up to the band maximum.