Fully funded for non levy payers hiring aged 25 and under
SMEs who do not pay the levy can get fully funded training and assessment for apprentices aged 25 and under, removing the previous 5 percent co investment charge.
Best Practice Network
Key Apprenticeship and Levy Funding Changes for 2026
Apprenticeship funding and levy rules are changing during 2026. This page summarises the key updates for schools and trusts in England so you can plan budgets, staffing and starts with confidence, including Growth and Skills Levy changes that apply from 1 August 2026.
For schools and trusts in England Key changes across 2026 Plain English summary
Speak to an Apprenticeship Levy Expert to sense check your plan for 2026.
Key changes at a glance
What this means for schools and trusts: Planning cycles tighten, account value changes and costs can rise if levy funds run out. A clear start plan helps you protect budget and avoid losing funds.
Growth and Skills Levy changes from 1 August 2026
From 1 August 2026, previously announced Growth and Skills Levy changes include the removal of the 10 percent government top up, a shorter 12 month levy expiry window and higher employer co investment once levy funds run out.
Levy funds expire after 12 months from 1 August 2026
From 1 August 2026, the expiry window for levy funds reduces to 12 months from 24 months, increasing the urgency to commit funds before they are reclaimed.
The 10 percent top up ends from 1 August 2026
From 1 August 2026, the additional 10 percent government top up will no longer apply, reducing the value added to levy funds.
Co investment increases once levy funds run out from 1 August 2026
From 1 August 2026, where levy funds are exhausted, employers will need to pay 25 percent of additional apprenticeship costs, with the government paying 75 percent.
National Insurance support remains for eligible under 25s
Employers remain exempt from employer National Insurance contributions for apprentices under 25, subject to the relevant salary cap, which can help reduce overall employment costs.
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What this means for schools and trusts
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A shorter levy expiry window means you need a tighter start plan across the year, not just a once a year intake decision.
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The removal of the 10 percent government top up reduces the value added to levy funds, so prioritisation matters more.
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If levy funds run out, the higher employer contribution can change what is affordable, especially for larger cohorts or future starts.
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For eligible under 25 apprentices, employer National Insurance exemptions can still support affordability and workforce planning.
Important: This page summarises the employer briefing content shared with us and is designed to support planning without miscommunication. Some changes apply at different points during 2026, including Growth and Skills Levy changes from 1 August 2026. For official rules and final guidance, always check Department for Education and government updates.
A simple planning checklist
Review your funding position
- Check your levy account balance and expected expiry profile
- Map likely starts across the next 12 months
- Agree who signs off starts and when
Plan for affordability
- Model what happens if levy funds run out
- Build August 2026 changes into your budget planning
- Confirm where National Insurance exemptions may apply
Decide priorities
- Identify roles where apprenticeships reduce recruitment pressure
- Agree which cohorts matter most this year
- Match training choices to school improvement priorities
Book a discovery call with an Apprenticeship Levy Expert
We can sense check your plan and map suitable apprenticeship options to your workforce needs.
Frequently asked questions
When do the changes start
These changes do not all start at the same time. Based on the information shared, some reforms apply during 2026, with Growth and Skills Levy changes applying from 1 August 2026. Review timings carefully so decisions align with funding and budget windows.
What does levy funds expire after 12 months mean
From 1 August 2026, the levy fund expiry window reduces from 24 months to 12 months. This means schools and trusts may need tighter forecasting, faster decision making and a shorter planning cycle.
What happens if our levy account runs out
From 1 August 2026, if a levy paying employer exhausts its levy funds, the employer will need to pay 25 percent of additional apprenticeship costs, with the government paying 75 percent. This can affect affordability, so plan scenarios early.
Are apprentices fully funded for non levy paying schools
The information shared states that non levy payers can receive fully funded training and assessment for apprentices aged 25 and under, removing the previous 5 percent co investment charge. Eligibility depends on employer status and apprentice age.
How do National Insurance changes affect schools
The information shared confirms that employers remain exempt from employer National Insurance contributions for apprentices under 25, subject to the relevant salary cap. This can help reduce employment costs for eligible apprentices.
Talk it through with a levy expert
Book a discovery call with a Best Practice Network Apprenticeship Levy Expert. We will help you interpret the changes for your context and map options to your workforce priorities.
Book a discovery call