National Apprenticeship Week is a celebration of the impact of apprenticeships on careers, businesses, and the economy. It’s also a crucial reminder for employers to ask:
💡 Are we making the most of our Apprenticeship Levy?
Many businesses struggle to fully utilise their levy – either due to complex rules, restrictive funding options, or a lack of awareness about what’s possible. According to the Public Policy Research (IPPR) as a result, billions of pounds have gone unspent in recent years, meaning missed opportunities to train, upskill, and future-proof workforces.
But this could soon change. The proposed Growth and Skills Levy aims to give businesses greater flexibility to invest in a wider range of training options beyond apprenticeships – ensuring funds are used effectively, rather than expiring unused.
So, why are so many organisations failing to make the most of this funding at present?
1. Complexity & lack of awareness
Many businesses don’t fully understand how the levy works or what training qualifies. Some mistakenly believe it only applies to entry-level apprenticeships, missing out on opportunities to fund leadership development, digital skills, and technical training for existing employees.
2. Limited flexibility
Currently, levy funds must be used for formal apprenticeship programmes, leaving little room for alternative skills development. Many businesses have urgent training needs that don’t fit within rigid apprenticeship structures, leading to unspent funds.
3. Expiry of funds
Levy contributions expire after 24 months if not allocated. Without a clear training strategy and procurement process, businesses often lose access to funds they’ve already paid into.
4. Difficulties in training provider selection
With thousands of apprenticeship providers in the market, it’s challenging to find the right training solutions that align with business goals and workforce needs. Without expert guidance, companies either overpay for training or struggle to spend their funds efficiently.
📌How the Growth and Skills Levy could fix these issues
The proposed Growth and Skills Levy is a major shift that could allow greater employer control over training funds, making it easier to invest in the right skills at the right time.
Key proposed changes:
✅ More flexibility – Employers could allocate up to 50% of levy contributions to non-apprenticeship training.
✅ Broader training options – Shorter courses, technical skills, and leadership development may become eligible.
✅ Stronger support for young talent – New foundation apprenticeships could help entry-level employees gain valuable skills.
✅ Skills England oversight – A new agency will help streamline funding and ensure employer needs are met.
If implemented, this would mean businesses have far more options to invest in the right training for their workforce, rather than feeling constrained by traditional apprenticeships alone.
How businesses can start maximising their levy opportunity now
Even before changes come into effect, there are proactive steps businesses can take to make sure their levy funds aren’t wasted:
1. Review your workforce’s skills needs
➡ What training gaps exist in your organisation? Are you using your levy funding to develop future leaders, upskill technical teams, or drive innovation?
2. Explore training beyond apprenticeships
➡ While levy funds must be used for apprenticeships today, many higher-level apprenticeships (such as degree apprenticeships in leadership, digital transformation, or data science) could support existing employees’ growth.
3. Use Managed Learning Services (MLS) to simplify training procurement
➡ A Managed Learning Services (MLS) provider can help businesses:
✔ Find the right apprenticeship and training providers
✔ Manage levy-funded training efficiently
✔ Ensure funds are used before expiry
✔ Reduce admin burdens and improve compliance
4. Consider levy transfer opportunities
➡ If you can’t use all your levy funds, you can transfer up to 50% to smaller businesses or charities, supporting skills development elsewhere while making sure funds don’t go to waste.
5. Stay updated on levy reform
➡ With the Growth and Skills Levy on the horizon, businesses should stay informed and prepare to adapt their training strategies to take full advantage of new funding options.
Final thoughts: Don’t let your levy go to waste
With billions in unspent levy funds, businesses are missing a huge opportunity to develop talent, close skills gaps, and gain a competitive edge.
A proactive approach – combined with Managed Learning Services – can turn unused funds into a powerful workforce investment; both now and with a reformed levy on the horizon.
📢 Are you making full use of your Apprenticeship Levy? If not, let’s discuss how we can help.