The six 2026 changes every employer should know
16 standards defunded
Including Team Leader L3, Operations Manager L5 and Coaching Professional L5. New cohorts on defunded standards from September 2026 are not eligible for levy funding.
Growth & Skills Levy
The successor to the Apprenticeship Levy. More flexibility to fund short courses and non-apprenticeship training alongside apprenticeships.
Non-levy: 16–24 fully funded; 25+ still 5%
Non-levy employers: apprentices aged 16–24 are 100% funded. Age 25+ still pay 5% (government 95%). From August 2026, levy employers with exhausted funds co-invest 25%.
AI & Automation Practitioner L4
ST1512, £18,000 band, 15 months, no coding. The fastest-growing standard in the UK. TESS bundles up to 5 accredited qualifications, no competitor matches that.
Off-the-job stays at 6 hours/week
The 6-hour minimum is a funding rule, not a guideline. Compliance failures can trigger funding clawback. Build it into the line manager's calendar from day one.
12-month levy expiry
Unused levy in the digital account now expires after 12 months (was 24). Use it or lose it. Set a quarterly finance alert, we see mid-sized employers lose £40k-£120k/year to expiry.
16 standards defunded
Here's what was withdrawn, why, and what replaces it.
From 1 September 2026, 16 apprenticeship standards lost levy funding. The most widely-used programmes affected are Team Leader Level 3, Operations Manager Level 5, and Coaching Professional Level 5, between them accounting for tens of thousands of active apprentices across the UK.
Anyone enrolled on a defunded standard before September 2026 can normally continue to completion. New cohorts on these standards after the cut-off date are not eligible for levy funding. Employers planning cohort starts in summer 2026 with the intention of re-enrolling in October should rethink, once a standard is withdrawn, new enrolments stop.
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The Growth & Skills Levy
What the successor to the Apprenticeship Levy actually changes.
Announced as the 2026 replacement for the Apprenticeship Levy, the Growth and Skills Levy is designed to give employers more flexibility with their levy spend. The headline shift: short courses and non-apprenticeship training become fundable alongside apprenticeships. The final policy detail is still being consulted on, but the direction of travel is clear.
For employers who've struggled to spend their full levy on apprenticeships alone, particularly those with distributed teams, project-based workforces, or rapid skill-change needs, this is a material change. It also means providers who offer both apprenticeships and short courses (like TESS) will have a natural advantage in the transition.
What to do now: model the impact on your 2026/27 spend. How much unspent levy expires? How many short courses would you fund if you could? Get this on your exec agenda before the detailed rules drop.
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Non-levy and exhausted-levy funding (Aug 2026)
Age bands and co-investment rates employers actually need.
For non-levy employers: apprentices aged 16–24 are 100% funded. Apprentices aged 25+ still attract the 5% employer / 95% government co-investment. Do not promise a single “under-25 = free” rule without the 16–24 cut.
From August 2026, levy-paying employers whose digital account is exhausted co-invest 25% (government 75%) on new starts. Never quote an employer’s unseen levy balance as if it were confirmed.
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The 2026 timeline
The key dates to put on your L&D and finance calendars.
What to do this quarter
Five concrete actions. None of them take more than an afternoon.
- Pull your current apprentice list. Flag anyone on a defunded standard. Confirm their completion pathway with your provider in writing.
- Calculate levy at expiry risk. Identify any funds that'll hit the 12-month expiry window. Get a recovery plan.
- Add one AI apprenticeship option to your 2026 prospectus. ST1512, AI for People Leaders L4, or AI for Operations Leaders L4, the three most common shifts.
- Brief your finance and HR leads. One 30-minute meeting. Share the timeline above. Decide who owns the calendar alerts.
- Download the 2026 Levy Readiness Checklist. Score yourself. Action anything unchecked. 30-minute exercise.
Get ahead of September 2026.
Download the 8-page Levy Readiness Checklist. Tick what's done, action the rest.
Download the checklist (PDF) Book a 30-min reviewFrequently asked questions
The six questions we hear most often from employers.