Big Changes to Apprenticeship Funding: The Apprenticeship Levy Becomes the Skills and Growth Levy
In April 2025, the UK government made a major update to apprenticeship funding policy. The Apprenticeship Levy – the system that has funded employer-led apprenticeship training since 2017 – was officially rebranded as the Skills and Growth Levy.
This marks a significant shift in the way employers can invest in skills development, with new levels of flexibility and a broader scope for using levy funds. Here’s what’s changed — and what it means for your business.
From Apprenticeship Levy to Skills and Growth Levy: What’s Different?
The Apprenticeship Levy required large employers (those with an annual payroll over £3 million) to contribute 0.5% of their wage bill into a levy account, which could then be used to fund apprenticeship programmes. While it successfully boosted participation in apprenticeships, many employers felt restricted by how the funds could be spent.
Now: A More Flexible System
Under the Skills and Growth Levy, employers still contribute in the same way – but now have greater flexibility in how they use their levy funds.
Key changes include:
- Broader training options: Levy funds are no longer limited to apprenticeships. Employers can now invest in a wider range of skills programmes, including shorter courses, modular learning, and targeted upskilling.
- Customised workforce development: Businesses can tailor training strategies to meet their specific needs, whether that’s boosting leadership capability, digital fluency, or technical expertise.
- Growth-focused investment: The revised approach places a stronger emphasis on economic growth and productivity, encouraging employers to invest in the skills that will drive performance and long-term development.
Why the Change Matters
In today’s fast-moving market, one-size-fits-all training doesn’t cut it. Employers need quicker, more agile solutions to fill skills gaps and stay competitive.
With the Skills and Growth Levy, employers can:
- Upskill and reskill staff more effectively.
- Get more out of their levy contributions.
- Align learning and development with business goals, not just predefined frameworks.
This change also addresses long-standing feedback from businesses – particularly those who felt forced to use their funds on apprenticeships that weren’t a natural fit for their needs.
What Employers Can Do Now
With the new system already in place, now is the time to:
- Review your current training spend – are you making the most of your levy?
- Explore alternative training formats that are now eligible for funding.
- Work with us to build a more flexible, impactful skills strategy.
- Use the opportunity to future-proof your workforce with the right mix of technical, digital, and leadership skills.
How S&A Academy Can Help
At S&A Academy, we offer a wide range of fully funded apprenticeships and commercial courses designed to support employers in every sector – from tech and science to business, management, and marketing.
Whether you want to:
- Maximise your levy investment through high-impact apprenticeships,
- Upskill existing staff with flexible, accredited training, or access short, specialist courses to meet immediate business needs, we’re here to support your skills strategy at every level.
Our team can help you:
- Identify the right programmes for your workforce
- Navigate the Skills and Growth Levy
- Create a tailored learning and development plan
- Find, match and screen candidates for the role
Get in touch with us today to explore how we can help you build the skilled, confident workforce your business needs to thrive.
Email [email protected] or [email protected] to find out more today.
