Apprenticeship reforms in 2026: Levy changes and what education leaders need to know

1st May 2026 5 minute read

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Apprenticeship reforms in 2026: Levy changes and what education leaders need to know

 

Apprenticeship funding in England is changing during 2026. The Apprenticeship Levy is being reshaped into the Growth and Skills Levy, with new flexibilities and changes to how employers can use and manage apprenticeship funding. 

Alongside the introduction of apprenticeship units, a number of funding reforms came into effect on 1 August 2026. These include the removal of levy top-ups, shorter expiry periods for newly accrued levy funds and changes to co-investment rates.

For leaders in early years settings, schools and trusts, these changes may affect staff development plans, apprenticeship starts and future training budgets. Understanding what has changed can help you make the most of the funding available and plan with confidence.

Please note: this page summarises confirmed and announced changes to apprenticeship funding and the Growth and Skills Levy. Employers should always check the latest Department for Education guidance before making funding decisions.

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 employers, with an annual pay bill under £3 million, do not pay the levy. They can still access government funding for apprenticeship training.

In most cases, they contribute 5% towards training and assessment costs, with the government funding the remaining 95%, up to the funding band maximum.

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 changed

Levy funds expire sooner
Newly accrued Levy funds now expire after 12 months. Funds that entered employer accounts on or before 31 July 2026 continue to follow the existing 24-month expiry rules.

The 10% government top-up has ended
Employers no longer receive the 10% government top-up previously added to levy funds. This means the funding available reflects only their levy contributions.

Employer contributions increase once levy funds run out
Levy-paying employers who have used all their levy funds now contribute 25% towards apprenticeship training and assessment costs for new starts, with government funding the remaining 75%.

More support for smaller employers
Eligible non-levy-paying employers no longer need to contribute towards apprenticeship training and assessment costs for apprentices aged 16 to 24. Government funds these costs in full, up to the funding band maximum.

Funding will be withdrawn from some apprenticeships
From September 2026, government funding will be withdrawn from 16 apprenticeship standards, including the Level 5 Operations Manager standard used for the Thrive Wellbeing Leadership Level 5 Apprenticeship.

Existing learners can continue as normal, but Autumn 2026 will be the final cohort for this Thrive apprenticeship route.

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.

  

Explore Thrive Apprenticeships

 

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