5 Signs You’re Missing Out on the Apprenticeship Levy



 

Since its launch in 2017, the apprenticeship levy has given UK employers a unique opportunity: a ringfenced budget to upskill, reskill and future-proof their workforce. Yet every year, billions of pounds in levy funds go unspent. If you’re not making the most of your apprenticeship levy, you’re not just leaving money on the table – you’re missing out on a critical lever for talent development and business growth.

Here are five clear signs your organisation isn’t getting full value from the apprenticeship levy.

  1. Your apprenticeship levy funds are expiring unused

Levy contributions expire after 24 months. If you’re not tracking where and how apprenticeship levy funds are allocated, you’re likely losing them straight back to the Treasury. A structured approach to planning apprenticeships across departments helps ensure no money goes to waste.

 

  1. You’re only using apprenticeships for entry-level roles

The apprenticeship levy isn’t limited to early careers. Apprenticeships today cover leadership, digital, sales, management, and more – right up to degree-level. If you’re not applying your levy to programmes for managers, future leaders or specialist roles, you’re barely scratching the surface.

 

  1. Your levy programmes don’t align with business priorities

If your apprenticeship levy usage feels like an HR box-ticking exercise rather than a strategic lever, it’s a warning sign. When designed properly, levy-funded apprenticeships should map directly to business objectives: closing skill gaps, strengthening succession pipelines, and driving performance.

 

  1. Your employees don’t know what’s available

Even if you have levy-funded programmes in place, are your people aware of them? Many organisations undersell apprenticeship opportunities, leaving employees disengaged. Strong internal comms and manager advocacy can turn apprenticeships into a powerful talent magnet.

 

  1. You treat apprenticeships as one-off interventions

Apprenticeships funded through the levy are not stand-alone courses. They work best when integrated into a wider learning and development strategy – linked to mentoring, coaching, and ongoing capability building. If you’re not embedding levy programmes into the flow of work, you’re missing the multiplier effect.

 

The bottom line

The apprenticeship levy isn’t just a tax – it’s a tool. Used well, it can supercharge workforce capability, improve retention, and reduce recruitment costs. Used poorly – or not at all – it becomes a sunk cost.

Ready to turn the apprenticeship levy into real business impact? Let’s talk or reserve a seat in one of our Discovery Sessions here. 

Contact Us

FAQ


The apprenticeship levy is a UK government initiative introduced in 2017 to fund apprenticeships. Large employers with an annual pay bill over £3 million contribute 0.5% of their payroll into the levy, which can then be reinvested into apprenticeship training.


Any organisation in the UK with a pay bill above £3 million must pay into the apprenticeship levy. Smaller organisations don’t pay, but they can still access government funding for apprenticeships through co-investment schemes.


Levy funds can only be used for approved apprenticeship training and assessment. This includes programmes across a wide range of areas – from leadership and management to digital, sales and customer service.


Apprenticeship levy contributions expire after 24 months if they’re not spent. Any unused funds go back to the Treasury, which means lost budget for skills development inside your organisation.


Yes. The apprenticeship levy isn’t limited to entry-level roles. Many organisations now use it to support professional development at every stage – including senior leadership, strategic management and degree-level apprenticeships.

Back to the top