Apprenticeship funding rules in England are changing during 2026. From April, the Apprenticeship Levy is evolving into the Growth and Skills Levy.
While some details are still emerging, leaders in early years settings, schools and trusts may need to consider what these changes mean for staff development, workforce planning and future training budgets.
Please note: This page summarises the changes currently being discussed and is intended to support early planning. Changes are expected to apply at different points during 2026, including Growth and Skills Levy changes from August. For official rules and final guidance, always check Department for Education and government updates.
What’s staying the same
Who pays the levy
Employers with an annual pay bill of over £3 million pay the levy.
Non-levy-paying employers
Smaller businesses (those with a pay bill under £3 million) do not pay the levy. They can still access funding by contributing 5% towards the cost of apprenticeship training, with the government covering the remaining 95%. They may also be able to benefit from levy transfers to cover the 5%.
Transferring levy funds between organisations
Larger organisations who pay the levy can transfer up to 50% of their funds to other employers. This means you may be able to access fully funded apprenticeships, even if you don’t pay the levy yourself.
National Insurance support
National Insurance savings are expected to remain in place for employers hiring apprentices under the age of 25, subject to the usual eligibility rules.
What’s changing
Levy funds may expire sooner
From August 2026, levy funds are expected to expire after 12 months, rather than the previous 24-month window. For levy-paying employers, this could mean less time to use available funds before they are lost. Leaders may need to review levy balances more regularly and plan apprenticeship starts earlier.
The 10% government top-up is expected to end
This means employers will only be able to access the value of their own levy contributions, reducing the overall amount available for training.
Employer contributions are set to increase once levy funds run out
Once levy funds have been used, employer co-investment is expected to rise from 5% to 25%, with the government funding the remaining 75%.
More support for smaller employers
For eligible smaller employers, the 5% co-investment requirement is expected to be removed when hiring apprentices under the age of 25. This may be particularly relevant for smaller early years providers, nurseries, pre-schools, independent schools and other education employers that do not pay the levy but want to invest in staff development.
Funding will be withdrawn from some apprenticeships
From September 2026, funding will be withdrawn from a number of apprenticeships, including the Thrive Wellbeing Leadership Level 5 Apprenticeship.
What this means for leaders
These changes make early planning more important. If you’re considering a Thrive apprenticeship, now is a good time to review your funding position, check levy balances and understand when funds expire.
For non-levy-paying employers, it’s worth exploring whether a levy transfer could support your apprenticeship plans.
The strategic advantage of a Thrive apprenticeship
A levy-funded Thrive apprenticeship is more than a training course. It’s a strategic way to develop staff expertise, embed Thrive across your setting and support children and young people to reach their potential.
Thrive offers different apprenticeship routes depending on your setting and workforce needs. Our Level 5 programmes lead to a nationally recognised qualification and Thrive Licensed Practitioner status. For the duration of the apprenticeship, settings also receive access to a free Thrive membership, including Thrive-Online, My Thrive Scan, online training for all staff and expert implementation support.
Independent research by ImpactEd Evaluation shows that the Thrive Approach is associated with improved attendance, reduced exclusions, stronger pupil wellbeing, particularly for those with SEND, and improved staff wellbeing and morale.
For many leaders, a Thrive apprenticeship offers a structured, funded route to building internal expertise, embedding relational practice and creating lasting change.
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