For many large UK businesses, the Apprenticeship Levy (since April 2025, the Growth And Skills Levy) can feel like just another tax. However, viewing it this way means missing out on one of the most powerful tools available for developing your workforce and future-proofing your business. The levy is a dedicated fund designed to be reinvested directly into skills development, offering a cost-effective way to train new talent and upskill your existing team.
Whether you are a large employer contributing to the levy or a smaller business looking to benefit from government support, understanding what levy-funded and approved training is available is the first step to unlocking this potential. The system is designed to fund high-quality, structured training that leads to recognised qualifications and tangible business improvements.
This article will explain the importance of these courses, the vast range of options available, how to access the funding, and the significant benefits for both your business and your employees.
Why Are Levy-Funded Courses So Important?
The Apprenticeship Levy, now changed to the the Growth & Skills Levy, is part of a long-term strategic government initiative aimed at boosting the nation's skills. The levy provides a dedicated funding stream for vital workforce development, ensuring businesses can build the capabilities they need to grow.
For large employers with an annual payroll of over £3 million, the system is straightforward. You contribute 0.5% of your payroll costs, minus a £15,000 allowance, into a digital account. This money is then yours to spend on levy-funded training courses. Unused funds expire if not spent within 24 months, making it crucial to have a clear strategy for reinvesting these funds into your team.
Smaller businesses that don't pay the levy are not left out. They can benefit from a co-investment model where the government covers 95% of the training costs for an apprentice. This means an SME only needs to contribute a modest 5%, making high-quality training incredibly accessible. This support enables smaller companies to compete for talent and develop their teams without facing prohibitive costs.
Under the new Growth & Skills Levy, employers also have greater flexibility to use up to 50 % of their levy funds for a wider range of approved skills programmes beyond traditional apprenticeships, including short courses, modular learning and Skills Bootcamps, while the remaining 50 % must still be invested in apprenticeships.
What Types Of Apprenticeship Levy Courses Are Available?
A common misconception is that the levy only funds training for junior roles or traditional trades. In reality, the range of apprenticeship levy courses available is incredibly diverse, covering hundreds of job roles across almost every industry and at various skill levels, from intermediate (Level 2) right up to master's degree equivalent (Level 7). It is important to note that the funding for Level 7 apprenticeships is expected to be restricted to those aged 16-21, or up to 25 for career leavers and anyone with an Education, Health and Care Plan (EHCP), starting from January 2026.
The courses are developed by employer groups known as 'trailblazers', ensuring the content is relevant, up-to-date, and directly aligned with the skills businesses actually need. The options can be broadly categorised into two main areas:
Sector-Specific Training
These courses provide the technical knowledge required for specific industries. They are designed to equip employees with the practical skills needed to excel in their chosen field. Examples include:
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Digital and IT: Covering roles like Cyber Security Technologist, Data Analyst, and Software Developer.
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Healthcare and Science: Including qualifications for roles such as Senior Healthcare Support Worker and Laboratory Technician.
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Construction and Engineering: Funding training for Civil Engineers, Surveying Technicians, and many other site-based and technical roles.
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Creative and Design: Supporting roles like Junior Content Producer and Broadcast Production Assistant.
Business And Professional Skills
Alongside technical training, levy-funded courses cover a huge range of transferable business skills that are vital for any organisation. These apprenticeships are perfect for developing your support staff, managers, and future leaders. Popular courses include:
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Leadership and Management: The Operations/Departmental Manager (Level 5) and Chartered Manager Degree (Level 6) apprenticeships are extremely popular for developing strong leaders.
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Project Management: The Associate Project Manager (Level 4) apprenticeship equips employees with the skills to manage projects effectively.
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Customer Service: Courses are available to develop skills for customer-facing roles, improving client satisfaction and retention.
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Business Administration: Providing foundational skills for efficient and effective office support.
This extensive list means you can use your levy funds or co-investment to develop talent at nearly every level of your organisation.
How To Access Levy-Funded Courses:
Navigating the funding process is more straightforward than it might seem. The route you take depends on whether your business pays the levy.
For Levy-Paying Employers:
You manage your funds through a digital account on the government's Apprenticeship Service portal. From here, you can see your available funds, choose an approved training provider, and authorise payments for the apprenticeship training courses you select.
For Smaller Businesses (SMEs):
If you do not pay the levy, you can still access government support. You will need to create an account on the Apprenticeship Service portal to reserve funding. You will then work with your chosen training provider to manage the process, and you will typically pay your 5% contribution directly to them.
Regardless of your business size, there are a few key requirements for any funded course:
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Choose an approved provider and course: you must select a provider and a specific apprenticeship standard from the government's approved list.
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Link to a real job role: the training must be for a genuine job role, whether for a new hire or an existing employee who needs significant new skills.
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Minimum duration and off-the-job training: since August 2025, apprenticeships should last for at least 8 months instead of 12. It must also include off-the-job training, which accounts for a fixed minimum number of training hours (specific to each apprenticeship standard), dedicated purely to their learning and development.
The Benefits For Employers And Employees
For employers, it is a highly cost-efficient way to grow talent. It helps you fill critical skill gaps, build a pipeline of future leaders through effective succession planning, and improve employee retention by showing a clear commitment to their development. A well-trained workforce is more productive, innovative, and engaged, giving you a distinct competitive advantage.
For employees, meanwhile, the benefits are equally significant. Apprentices gain valuable hands-on experience in a real job while receiving structured, expert-led training. They earn a wage throughout their learning and finish with a nationally recognised qualification and no student debt. This combination of practical experience and formal learning significantly strengthens their long-term career prospects and provides a clear path for progression.
Next Steps
At Penguin Learning, we help businesses of all sizes make the most of their levy funds by designing and delivering high-impact training programmes that align with their strategic goals. If you are ready to turn your levy into a strategic investment in talent, contact us today to explore the right courses for your team.