Growth and Skills Levy Changes 2026: What Employers Need to Check Now Apprenticeship funding in England has changed. The Department for Work and Pensions updated the 2026 to 2027 apprenticeship funding rules again on 3 August 2026, and the main rules apply to apprenticeships starting on or after 1 August unless stated otherwise. For employers, this is not simply an update for the finance department. The changes affect how levy funds behave, what happens when an employer’s levy balance runs short, the support available for younger apprentices and the funding position of several apprenticeship standards that are particularly relevant to facilities management, cleaning and security. The practical message is straightforward: if apprenticeships form part of your workforce plan, it is worth reviewing the new rules before approving new starts, budgets or training assumptions. What Has Happened? The government is moving towards the Growth and Skills Levy model, broadening the system so relevant funding can support apprenticeships as well as newer products including foundation apprenticeships and apprenticeship units. Several important funding mechanics changed from 1 August. New levy funds entering an employer’s apprenticeship service account no longer receive the previous 10% government top-up. New funds will also generally expire after 12 months instead of 24 months. Funds that entered an account on or before 31 July 2026 retain their existing 24-month expiry treatment. Co-investment rules have also changed. For new starts where a levy-paying employer does not have sufficient funds in its apprenticeship service account and the apprentice is aged 25 or over, the employer contribution is 25%, with government funding 75% of eligible training and assessment costs up to the funding-band maximum. There is greater support for eligible younger apprentices. The government guidance provides for full funding in specified circumstances for eligible apprentices aged 16–24. Employers should still check the exact eligibility rules rather than assuming that every younger apprentice automatically qualifies. There is another change coming in October. Eligible non-levy employers recruiting qualifying new apprentices aged 16–24 will be able to receive a £2,000 hiring payment, subject to the published requirements. Why This Matters The changes make workforce planning more time-sensitive. A levy-paying employer that previously allowed funds to remain unused for long periods now has a shorter expiry window for new funds entering its account. An organisation that exhausts its levy balance may also face a different financial contribution depending on the circumstances and age of a new apprentice. For smaller businesses, meanwhile, the increased support available for younger apprentices may create opportunities that were previously assumed to be unaffordable. The result is that HR, learning and development, operations and finance teams increasingly need to work from the same workforce plan. The questions are connected: What skills does the organisation need? Who needs developing? Is an apprenticeship actually the right route? When should it start? What funding is available? And what happens if the organisation’s levy position changes? There is also a particularly important issue for employers operating in facilities management, cleaning and security. Government funding is scheduled to end for new starts from 1 September 2026 for several relevant standards, including: Facilities Management Supervisor Level 3; Cleaning Hygiene Operative Level 2; Professional Security Operative Level 2; and Security First Line Manager Level 3.   That does not mean those occupations or their skills are no longer valuable. It means the public funding position is changing. Skills England states that existing apprentices who started before the funding cut-off can continue to be funded through completion, while the affected standards can remain available for privately funded delivery. Employers therefore need to distinguish between: “This apprenticeship no longer receives government funding for a new start” and “This training can no longer be delivered.” They are not the same thing. What This Means for Different Organisations Small and medium-sized businesses Non-levy employers should check whether planned younger apprentices qualify for the enhanced funding available from August. They should also investigate the £2,000 hiring payment scheduled for October rather than automatically including it in budgets before checking the eligibility conditions. For an SME that has previously considered apprenticeships too expensive, the new position may justify another look. Large and levy-paying employers Larger organisations should pay close attention to three things: the removal of the 10% top-up; the shorter expiry period applying to new levy funds; and the new co-investment position if available levy funds are exhausted. This strengthens the case for a rolling workforce-development forecast rather than deciding apprenticeship starts one employee at a time. Facilities management, cleaning and security businesses These organisations have an additional reason to review planned training. If a workforce plan assumes continued government funding for one of the affected apprenticeship standards after 1 September, that assumption should now be checked. Employers should not, however, rush someone onto an apprenticeship solely to secure funding before a deadline. The role, occupational fit, prior learning, competence requirements and suitability of the programme still matter. Multi-site and public-sector organisations The rules discussed here apply to the English apprenticeship funding system. Employers with operations across England, Scotland, Wales and Northern Ireland should avoid treating the English position as a single UK-wide funding rule because the nations operate different apprenticeship arrangements. Practical Implications Consider an FM organisation planning supervisor development across a number of sites. Its original workforce plan may have assumed that the Facilities Management Supervisor apprenticeship would remain government-funded later in the year. Funding for new starts on that standard is now scheduled to stop from 1 September. The organisation therefore needs to determine whether: the apprenticeship remains the right development route; another apprenticeship standard better reflects the job; privately funded delivery is appropriate; or a different form of professional or role-specific staff training would better address the capability requirement. Now consider a levy-paying organisation whose account is likely to run low. If it plans a new apprenticeship for an employee aged 25 or over after its levy funds have been exhausted, the new 25% co-investment position could materially affect the training budget. The wider lesson is not to treat