Growth and Skills Levy: information for employers

What is the Growth and Skills levy?

In April 2025 the government renamed and reformed the Apprenticeship Levy, expanding its scope to beyond just apprenticeships. Up to 50% of the levy will be available for use for modular courses, technical upskilling, and skills bootcamps.

The aim of the growth and skills levy is to boost the economy, create inclusive growth, and address labour market needs by enhancing skills and training opportunities for both employers and individuals by:

Increasing productivity: Greater flexibility to invest in training that is relevant to business needs will support innovation and greater productivity.

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Funding and the Levy

The growth and skills levy will be funded in the same way, by UK employers (with an annual pay bill of over £3 million) paying a levy of 0.5% of their annual pay bill into their levy ‘account’. Non levy paying employers, can access funds via the apprenticeship service, in 2 ways: 1. by reserving funds from the apprenticeship service (95% paid and employer pays 5%) or 2. Levy transfer (100%).

How will employers spend their levy funds?

Expiry of funds: Funds in an employer's account expire after 24 months if not used.

Preparing to enhance skills training opportunities for your workforce

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Our friendly team are happy to guide you through the processes of getting into work-based learning and answer any questions you might have.

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Summary of changes

  • Introduction of a new Foundation apprenticeship
  • Reduction of minimum duration for apprenticeships from 12 months to 8 months
  • Increased flexibility around Maths and English requirements
  • Focus on skills needs – informed by Skills England assessment of priority skills need
  • New shorter courses: Funding for short courses is now available to help employers fill skills gaps more quickly.

For details, visit How are apprenticeships funded and what is the apprenticeship levy?

Incentives

There are incentives to support on young people and key sectors: While providing more flexibility, the levy continues to prioritise training for young people and closing skills gaps in important industries. There will be additional incentives for businesses offering apprenticeships to young people.

To support even more businesses to offer apprenticeships to young people:

  • Employers do not have to pay employer national insurance contributions for apprentices aged under 25 when the apprentice earns less than £50,270 annually
  • 100% funding of apprentice training costs (up to the funding band maximum) for employers who do not pay the levy when they take on apprentices aged 16-21, and apprentices aged 22-24 who have an Education, Health and Care Plan or have been, or are, in local authority care
  • Incentive payment of £1,000 to both employers and training providers when they take on any apprentice aged under 19, or apprentices aged 19-24 who have an Education, Health and Care Plan or have been in care
  • Payment of a care leaver bursary of £3,000 to apprentices aged 16-24 who have been, or are, in care

View details via the Department for Education website.

How the University will help you with your apprenticeship journey

As your training provider, we can help support you with the process of recruiting an apprentice. This could be via supporting you to attract internal recruits through a range of activities (such as holding webinars, drop-in sessions), or if you are recruiting externally, we will advertise your apprenticeship vacancies on the Recruit an Apprentice website: Sign in to your apprenticeship service account - GOV.UK

We hold a number of events during the year which give you an ideal opportunity to make contact with potential candidates. We can also offer you support with your own assessment process, by attending and contributing to your assessment centres or interviews.

Onboarding your Apprentice

Learners will be invited to formally apply for their apprenticeship through a secure online portal. They will be sent individual log-in details to complete an initial assessment of their English and maths for apprenticeships in England and undertake a cognitive assessment designed to identify any learning needs. We will also carry out a number of checks and activities to ensure that individuals are on the right programme of learning and that they are eligible for government funding.

Ongoing Apprenticeship Support

The Programme Leader will be the single point of contact during the apprenticeship programme. They will monitor and share academic progress of your apprentice/s, along with the apprentice's Personal Academic Tutor and Skills Coach. If there are any areas of concern they will coordinate with relevant colleagues to put in place any actions or strategies and will highlight good practice and areas for improvement.

The Centre for Degree Apprenticeships manage the compliance and monitoring of all apprenticeship programmes across the University.  They will be able to advise on apprenticeship funding and will work with you on ensuring contracts and compliance documents are completed appropriately for your apprentice/s and that details on the Digital Apprenticeship Service (DAS) are accurate. Along with the Programme Leader, they will also monitor the progress of your apprentice and advise on any actions that may be required to ensure your apprentice remains on track.

For More Information

Contact:

Tel:


Email: Apprenticeships@winchester.ac.uk