In 2025, 37% of levy payers spent more than 50 per cent of the funds in their apprenticeship service accounts.

The number of employers that paid the Apprenticeship Levy in the 2022 to 2023, 2023 to 2024, and 2024 to 2025 tax years are outlined in the table below. Figures have been provided on a tax-year receipts basis and rounded to the nearest 100.

Table: Number of employers paying the Apprenticeship Levy

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency and making it more efficient.

From August, we are changing the employer’s co-investment rate from 5% to 25% for levy-paying employers once they have exhausted all their levy funds. Levy-paying employers will still be able to benefit from a very generous 75% government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment. This will support greater employer investment in skills overall and ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We have undertaken extensive engagement with businesses and other key stakeholders in the design of these reforms and will continue to work closely with key partners as we develop the detail of any planned changes

To support employers of all sizes to take on apprentices the government pays £1,000 to both employers and providers for apprentices aged 16-18, and for apprentices aged 19-24 who have an Education, Health and Care Plan (EHCP) or have been, or are, in local authority care. On top of this, employers will receive additional payments of up to £2,000 for eligible foundation apprenticeships. Additionally, employers are not required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 (when the employee’s wage is below £50,270 a year).

The government is also supporting non-levy paying employers (essentially SMEs) meet the additional costs of taking on young people by introducing a new £2,000 incentive payment when they hire apprentices under the aged of 25 as new employees.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency and making it more efficient.

From August, we are changing the employer’s co-investment rate from 5% to 25% for levy-paying employers once they have exhausted all their levy funds. Levy-paying employers will still be able to benefit from a very generous 75% government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment. This will support greater employer investment in skills overall and ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We have undertaken extensive engagement with businesses and other key stakeholders in the design of these reforms and will continue to work closely with key partners as we develop the detail of any planned changes

To support employers of all sizes to take on apprentices the government pays £1,000 to both employers and providers for apprentices aged 16-18, and for apprentices aged 19-24 who have an Education, Health and Care Plan (EHCP) or have been, or are, in local authority care. On top of this, employers will receive additional payments of up to £2,000 for eligible foundation apprenticeships. Additionally, employers are not required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 (when the employee’s wage is below £50,270 a year).

The government is also supporting non-levy paying employers (essentially SMEs) meet the additional costs of taking on young people by introducing a new £2,000 incentive payment when they hire apprentices under the aged of 25 as new employees.

We will carefully monitor the impact of these changes once they take effect.

The Apprenticeship Levy was introduced in 2017 and is only paid by large employers with a total annual pay bill of over £3 million.

I refer the hon. Member to the answer of 9 February 2026 to Question UIN 109925.

I refer the hon. Member to the answer of 9 February 2026 to Question UIN 109925.

The total number of non-levy employers that received a transfer from a levy-paying employer in the 2023-24 financial year is 6,348. The proportion of non-levy employers that had an active apprenticeship service account that received a payment in the 2023-24 financial year, that received transfers was 5.9%.

This information is based on providers that received payments for non-levy employer learners for the 2023-24 financial year.

Non-levy paying employers are not required to register for an apprenticeship service account; the data we hold is therefore not a reflection of all non-levy paying employers in England. Additionally, not all non-levy paying employers that are registered for an apprenticeship service account will employ apprentices and receive payments for them each year.

Each apprenticeship standard is allocated to one of 30 funding bands, which range from £1,500 to £27,000. These represent the maximum value that government will contribute towards the training and assessment for each apprenticeship.

All apprenticeship standards are reviewed periodically for both content and funding. Employers can also request an exceptional review where they are able to evidence significant cost changes. Skills England continues to work closely with employers throughout the revision process to ensure current delivery costs are reflected, whilst also delivering value for money.

I refer the hon. Member to the answer of 13 June 2025 to Question 57098.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency, and making it more efficient.

From August 2026, we are removing the 10% top-up for levy-paying employers, changing expiry of levy funds to 12 months, and changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds.

Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment.

These changes will ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We continue to support SMEs to take on apprentices and for the first time we will be fully funding the cost of training eligible apprentices aged 16-24 at non-levy paying employers (essentially SMEs). From August 2026, training and assessment will be completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and training providers.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency, and making it more efficient.

From August 2026, we are removing the 10% top-up for levy-paying employers, changing expiry of levy funds to 12 months, and changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds.

Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment.

These changes will ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We continue to support SMEs to take on apprentices and for the first time we will be fully funding the cost of training eligible apprentices aged 16-24 at non-levy paying employers (essentially SMEs). From August 2026, training and assessment will be completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and training providers.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency, and making it more efficient.

From August 2026, we are removing the 10% top-up for levy-paying employers, changing expiry of levy funds to 12 months, and changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds.

Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment.

These changes will ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We continue to support SMEs to take on apprentices and for the first time we will be fully funding the cost of training eligible apprentices aged 16-24 at non-levy paying employers (essentially SMEs). From August 2026, training and assessment will be completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and training providers.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency, and making it more efficient.

From August 2026, we are removing the 10% top-up for levy-paying employers, changing expiry of levy funds to 12 months, and changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds.

Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment.

These changes will ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We continue to support SMEs to take on apprentices and for the first time we will be fully funding the cost of training eligible apprentices aged 16-24 at non-levy paying employers (essentially SMEs). From August 2026, training and assessment will be completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and training providers.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency and making it more efficient.

Currently, levy-paying employer accounts can show large unspent balances (currently totalling around £6.5 billion) which far exceed our annual apprenticeship budget. This has led to an incorrect understanding that there are significant unspent funds available to spend. However, over the last four years, on average, 98% of the English apprenticeships budget has been spent.

The 10% government top-up is one cause of this problem and removing it, alongside reducing the expiry period to 12 months, means we can simplify the system and ensure levy balances are more closely aligned to the annual levy paid by employers. Existing funding will remain within accounts, with the changes applying only to new funds entering accounts.

We are also changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds. Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment. This will support greater employer investment in skills overall and ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We will carefully monitor the impact of these changes once they take effect.

As we introduce new products, such as apprenticeship units and foundation apprenticeships, we are also simplifying the Growth and Skills Levy, improving its transparency and making it more efficient.

Currently, levy-paying employer accounts can show large unspent balances (currently totalling around £6.5 billion) which far exceed our annual apprenticeship budget. This has led to an incorrect understanding that there are significant unspent funds available to spend. However, over the last four years, on average, 98% of the English apprenticeships budget has been spent.

The 10% government top-up is one cause of this problem and removing it, alongside reducing the expiry period to 12 months, means we can simplify the system and ensure levy balances are more closely aligned to the annual levy paid by employers. Existing funding will remain within accounts, with the changes applying only to new funds entering accounts.

We are also changing the government’s co-investment rate from 95% to 75% for levy-paying employers once they have exhausted all their funds. Levy-paying employers will still be able to benefit from a very generous government contribution once their funds are exhausted, but it is right that employers who utilise all their levy funds contribute more to apprenticeship training and assessment. This will support greater employer investment in skills overall and ensure funding is available to roll out further flexibility for business and increase opportunities for young people.

We will carefully monitor the impact of these changes once they take effect.

Apprenticeship receipts in 2024-25 were £4,100 million. Full year figures for 2025-26 will not be available until the end of the 2025-26 tax year.

The apprenticeship budget funds all apprenticeship training in England, covering both existing and new apprenticeships, across all employers. The English apprenticeship budget in the 2024-25 financial year was £2,769 million. This increased to £3,075 million in the 2025-26 financial year at mains estimates, any further updates will be reflected at supplementary estimates. As announced by the Prime Minister in September, responsibility for apprenticeships has now transferred to the Department for Work and Pensions, and from 2026‑27 apprenticeships funding will be part of its budget.

While the Apprenticeship Levy is UK-wide, apprenticeship policy and spending are devolved. This means the devolved governments receive Barnett consequentials on apprenticeship spending in England through the Barnett formula. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investment in their own skills programmes, and they are accountable to their respective legislatures for those decisions.

If an apprentice is made redundant and their training provider can continue to deliver their government funded apprenticeship training, we will continue to fund the apprenticeship training for at least 12 weeks following redundancy. This is to give the individual time to find alternative employment in order to continue with the apprenticeship.

If the apprentice is unable to secure a new employer, they may still be able to finish their apprenticeship training and assessment if they have less than 6 months of training left to complete or have finished 75% or more of their training.

If an individual has been made redundant prior to the commencement of the apprenticeship, then they are not eligible for funding.

Employers start and manage apprenticeships through their apprenticeship service accounts. Employers may have more than one apprenticeship service account for their business.

In the 2024/25 academic year, 13,829 levy accounts and 58,628 non-levy accounts had apprenticeship starts.