Many UK employers pay into the Apprenticeship Levy but don’t fully use the funding available to develop workforce skills. With key changes coming into effect from April 2026, now is the time to review your Levy strategy, particularly if you want to strengthen procurement and commercial capability.
What Is the Apprenticeship Levy?
The Apprenticeship Levy applies to employers with a UK annual pay bill over £3 million and is used to fund approved apprenticeship training and End-Point Assessment (EPA) for ALL employers. SME’s do not pay into the Levy but are able to utilise it to cover 100% of apprenticeship costs for their employees (this was previously 95%).
Levy funds currently expire after 24 months if unused, but this will reduce to 12 months from April 2026, increasing the risk of lost budget without a clear plan.
Government guidance is available here:
https://www.gov.uk/guidance/apprenticeship-levy
How Levy Funds Can Be Used
Levy funds can be used for:
- Apprenticeship training delivered by an approved provider
- End-Point Assessment (EPA)
They cannot be used for salaries, expenses, professional subscriptions and memberships or short courses. Training must align with government-approved apprenticeship standards:
https://www.gov.uk/guidance/apprenticeship-funding-rules
Developing Procurement and Commercial Capability
Procurement and commercial teams are often overlooked when Levy funding is allocated, despite their critical role in organisational performance. CIPS-aligned procurement apprenticeships offer a funded development route at multiple levels:
- Level 3 Procurement & Supply Assistant Apprenticeship
- Level 4 Commercial Procurement & Supply Apprenticeship
- Level 6 Senior Procurement & Supply Professional Apprenticeship
These programmes combine workplace learning with structured study, leading to recognised professional qualifications.
Why Act Now?
Upcoming changes mean:
- The 10% government top-up is being removed