A levy employer is a UK business with an annual payroll over £3 million. They pay 0.5% of their payroll into the Apprenticeship Levy, which sits in a digital account to fund apprenticeship training. Funds entering the account from August 2026 expire after 12 months if unused.

A non-levy employer has a payroll under £3 million and does not pay the levy. They still access government-funded apprenticeships. For new starts from 1 August 2026, apprentices aged 16 to 24 are 100% government funded with no employer contribution at all. For apprentices aged 25 and over, the government funds 95% and the employer contributes 5%.

It depends on the apprentice's age and whether you pay the levy. For new starts from August 2026: any employer taking on an apprentice aged 16 to 24 pays nothing towards training. For apprentices aged 25 and over, a non-levy employer pays 5%, and a levy employer whose funds have run out pays 25%. Levy employers with funds available cover the full cost from their pot. Emma will confirm your exact position free of charge.

Four things. Apprentices aged 16 to 24 became fully government funded for most employers. The employer contribution for levy payers who have run out of funds rose from 5% to 25% for apprentices aged 25 and over. New levy funds now expire after 12 months instead of 24. And the 10% government top-up no longer applies to new funds entering levy accounts.

Levy gifting (also called levy transfer) allows levy-paying employers to transfer up to 50% of their unused levy funds to another business. In practice transfers can be slow to arrange and there is never a guarantee one is available, so we would not suggest waiting on one. They are worth pursuing in two cases: an apprentice aged 25 or over at a non-levy employer, where it covers your 5%; and a levy-paying employer who has spent their own funds, where it covers the 25% co-investment. Any employer can receive a transfer, whether or not they pay the levy.

Almost certainly not. If you do not pay the levy, your government funding is automatic — there is nothing to apply for and nobody to persuade. Apprentices aged 16 to 24 are funded in full, and those aged 25 and over are 95% funded. A transfer only makes a financial difference if you would otherwise be paying the 5% or the 25%, and we will tell you honestly whether you are in that position.

Yes, and for most it happens automatically. For apprentices aged 16 to 24 full funding is now the standard position — the government pays the training costs outright. For apprentices aged 25 and over you would normally contribute 5%, and a levy transfer can cover that remainder where one is available.

Yes. The London borough councils run their own transfer schemes and they are considerably more accessible than finding a private employer willing to transfer. We have working routes into these schemes and have secured full funding for employers through them. What is available depends on each borough and its budget at the time, so we check your position before promising anything.

From October 2026, employers who do not pay the levy can claim up to £2,000 when they take on a new apprentice aged 16 to 24. It is paid in two instalments, with the first due once the apprentice has completed their first 90 days. It sits on top of the training being fully funded.

Unused levy funds are removed from your account. Funds entering your account from August 2026 expire after just 12 months, down from 24, so the window to spend them is now much shorter. Funds already in your account before that date keep the original 24-month expiry. Emma will help you build a training plan that uses your levy before it expires.