UK Apprenticeship Levy for Employees (2026/27)
Apprenticeship Levy for employees 2026/27: how existing staff in England train on levy funds, Level 7 age limits, off-the-job hours, 12-month expiry.
Apprenticeship levels
| Level | Examples and conditions |
|---|---|
| Level 2 (GCSE equivalent) | Customer service, hospitality, warehouse, care |
| Level 3 (A level equivalent) | IT technician, business administration, engineering technician |
| Level 4-5 (higher apprenticeships) | Data analyst, project manager, compliance officer |
| Level 6 (degree apprenticeship) | Software engineering, quantity surveying, accountancy |
| Level 7 (master's level) | Government-funded only for apprentices aged 16 to 21 at the start, or 22 to 24 with an EHC plan or care experience |
Every standard has a funding band (between £1,500 and £27,000) that caps what levy funds or government co-investment will pay for training and assessment. The apprentice pays nothing towards the eligible costs. Rules are the DfE apprenticeship funding rules for starts from 1 August 2026 to 31 July 2027, which apply in England.
Related guides
- UK Apprentice Rights + Pay 2026/27 - apprenticeship contract rights.
- UK Degree Apprenticeship 2026/27 - Level 6 deep-dive.
- UK Lifelong Learning Entitlement 2026/27 - modular loans.
- UK Professional Qualifications ROI 2026/27 - ACCA / CIMA / CIPD analysis.
Frequently asked questions
Can existing employees use the Apprenticeship Levy?
Yes. Apprenticeships are not restricted to new hires: the funding rules expressly cover existing members of staff, provided the apprenticeship teaches knowledge and skills they do not already have (prior learning reduces the training funded). Levy-paying employers in England spend their levy through an apprenticeship service account, and from 1 August 2026 the funds expire 12 months after they enter the account (previously 24 months). Ask HR or L&D which standards they support.
Who pays the Apprenticeship Levy?
Employers with an annual pay bill of more than £3 million (including connected companies and charities) pay 0.5% of the pay bill, less a £15,000 annual allowance. The levy is UK-wide, but the apprenticeship service and the funding described here are for England. For starts from 1 August 2026, employers who do not pay the levy get the government to pay 95% of the cost for an apprentice aged 25 or over, and all of it for one aged 16 to 24. Levy payers can transfer up to 50% of their annual funds to other employers.
What can an Apprenticeship cover?
Training and end-point assessment, up to the funding band maximum for the apprenticeship standard. Bands range from £1,500 to £27,000. The employer negotiates the price with the training provider. The provider and employer must not ask the apprentice to contribute to the eligible costs of training or assessment, during the apprenticeship or after it.
How much off-the-job training is required?
The fixed 20% rule no longer applies. Each apprenticeship standard publishes a minimum volume of off-the-job training hours, and no programme can fall below 187 hours. Off-the-job training is training separate from the normal job role, done in paid working hours, and the apprenticeship must last at least 8 months. The hours can be reduced only where the apprentice has relevant prior learning.
Can I do a Level 7 Master's via Apprenticeship Levy?
Only if you are young enough. Under the 2026 to 2027 funding rules, Level 7 apprenticeships are funded only for apprentices aged 16 to 21 at the start, or aged 22 to 24 with an Education, Health and Care plan or who have been in local authority care. Most mid-career employees can no longer use levy funds for a Level 7 apprenticeship; Level 6 degree apprenticeships remain available.
How do I ask my employer about using the levy?
Find the apprenticeship standard that matches your career goal and a training provider that delivers it. Then put a short proposal to HR or L&D: the standard, the provider, the price within the funding band, the off-the-job hours it needs and how it helps your role. Expect questions about time away from your job and how long you plan to stay. Large employers often run an apprenticeship programme already, so ask for the list of supported standards.
What's the salary impact?
Your contract does not change because you start an apprenticeship, so you keep your pay unless you agree otherwise. The apprentice minimum wage (£8.00 an hour in 2026/27) applies to apprentices aged under 19, or aged 19 or over in the first year of their apprenticeship; after that the minimum wage for your age applies. Off-the-job training must be done in paid working time.
What happens if I leave during the apprenticeship?
That depends on your contract and your employer's policy for anything outside the apprenticeship. On the training costs themselves, the funding rules say the employer and provider must not ask the apprentice to contribute to the eligible training or assessment costs, including when the apprentice leaves the programme early or leaves the employer, so a clawback of those costs is not allowed.