Big Changes Are Coming

The apprenticeship landscape is about to undergo its biggest transformation since the levy was introduced in 2017. From April 2026, the Apprenticeship Levy will officially become the Skills & Growth Levy, bringing major reforms thatwill impact every employer in the UK. Whether you’re a levy payer or not, the way you plan and fund apprenticeship training is about to change — significantly.

At the heart of the system is one key question:

That determines which set of rules applies to your organisation.

The changes are substantial and for some businesses, costly if not managed strategically.

Since 2017, unused levy funds expired after 24 months.
From August 2026, they will expire after just 12 months.
If you don’t use it, you lose it — twice as fast.

The automatic 10% the UK Government adds into your levy account will stop

If you use all your levy and need additional funding, your contribution will increase dramatically.

Businesses will now pay 25% (not 5%) of training costs above their levy balance.

You can no longer afford to take a passive approach.
You must:

This is exactly where SEATS becomes your strategic partner — helping you plan, use, maximise and stretch every penny of your levy before it expires.

The news here is much more positive.

Your business pays only 5% of the training costs — and even this can be removed through levy transfer schemes from larger organisations.

In fact, no business supported by SEATS has paid a penny towards apprenticeship training to date — something we’re incredibly proud of.

From April 2026:

That’s a win for business, a win for young talent and a huge boost for workforce development.

Alongside the major Skills & Growth Levy reforms, 2026 is expected to bring further changes to the apprenticeship landscape.

The UK Government has confirmed the introduction of Apprenticeship Units, designed to provide shorter, targeted training that helps businesses plug skills gaps quickly.

These units will sit alongside full apprenticeships, giving employers more flexible, modular options for upskilling staff.
We’re awaiting more detail on:

As soon as this information is released, SEATS will break it down for employers.

Following the defunding of Level 7 apprenticeships for learners over 25, we are now hearing industry-wide rumours that all leadership & management apprenticeships may be removed from levy funding.

This could include:

⚠️ Important:
These changes are not yet confirmed, and we are awaiting official guidance from the government.

If confirmed, this would reshape how organisations develop managers — and significantly increase the importance of:

SEATS will continue to monitor developments and communicate updates as soon as they are published.

These reforms will reshape how UK employers develop their people. The right decisions now will save money, strengthen skills, and future-proof your workforce.