The levy became the Growth and Skills Levy

The Apprenticeship Levy became the Growth and Skills Levy in April 2026. For most employers the headline is the good half: short course apprenticeship units and foundation apprenticeships are now available, so a skills gap can be closed without committing somebody to a programme lasting more than a year.

That is precisely why a Level 5 AI unit of thirty hours now exists as a thing a manager can be put through. Before April there was no vehicle for it.

The rest of the change

• From January 2026, new starts on Level 7 apprenticeships for anyone aged 22 or over are no longer supported through the levy
• From August 2026 the window to spend levy contributions dropped from 24 months to 12
• The employer contribution once levy funds are exhausted rose from 5 per cent of training costs to 25 per cent
• The government top up has gone, so an employer draws on the value of its own contributions rather than a topped up figure

Smaller employers came out better on one point: training costs for apprentices under 25 are covered in full, with the previous 5 per cent employer contribution removed.

What it means in practice

A twelve month spending window changes behaviour more than the headline suggests. Contributions that used to sit while a plan was agreed now expire. The employers who will do well out of this are the ones who decide in advance what they want their people to be able to do, and then pick programmes against that, rather than reacting when a balance is about to lapse.

It also puts a premium on shorter training that lands quickly. A thirty hour unit that produces a written strategy for your business is a very different proposition to an eighteen month commitment, and it fits a twelve month window without difficulty.

Sources: Growth and Skills Levy reforms, 2026. Summary of employer effects published by Grant Thornton UK, 2026.

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