Why your levy is about to disappear
The Apprenticeship Levy operates on a strict 24-month, first-in-first-out rule. Money you paid into your digital account in September 2024 must be spent on apprenticeships before 30 September 2026 — or it returns to HM Treasury. You can't reclaim it. You can't carry it over. It's simply lost.
If your finance team is looking at an unspent balance in your levy account right now, that balance has an expiry date attached to every line item. Older lines are spent first when you commit a new apprenticeship.
The pattern we see most often: employers who relied on Team Leader Level 3 (ST0384) for their first-line management pipeline have paused new starts because the standard was defunded for new starts after 31 December 2025. That pause means levy is sitting idle. And the September 2024 funds are now 3 months from expiring.
How much you stand to lose
What you can actually do before September
1. Start a cohort that mobilises in 6–8 weeks
Our AI & Leadership apprenticeships are designed for fast mobilisation. Initial assessments and DAS setup can run in parallel. Learners can be on programme drawing against levy well within the timeline.
AI for Team Leaders L4
CMI Level 3 included. The funded successor to the defunded Team Leader L3 for first-line managers.
For L&D teamsAI for Coaching Professionals L4
For internal coaches, L&D partners and people managers stepping into coaching roles.
Middle managersAI for Operations Leaders L4
For operational and senior managers. CMI L5 included. Real automation projects on the job.
Senior leadershipSenior Leader L7
MBA-equivalent senior leadership apprenticeship. Heaviest levy spend per learner — useful if you have larger expiring balances.
2. Transfer up to 50% of your annual levy to another business
Levy-paying employers can transfer up to half of their annual levy to other organisations — SMEs, charities, partner businesses, sector connections. The receiving business uses the funds for apprenticeship training. If your supply chain has SMEs in it, this is often the easiest way to spend levy fast.
TESS works on both sides of this: we have a register of SMEs ready to receive transfers, and we can manage the apprenticeship delivery end-to-end. Ask us about a transfer arrangement →
3. Use the L4/L5 AI Apprenticeship Units (AU0009/10/11)
If you want to skill up existing staff without a full apprenticeship, the Level 5 AI Apprenticeship Units are £750 per learner — 100% levy-fundable, short-format, no extended off-the-job training. Useful if you've got people who don't fit the apprenticeship profile but you still want to spend levy on AI capability.
Indicative timeline if we start the conversation in May
Discovery call (20 minutes)
We look at your levy statement, identify which months are most at risk, and propose 2-3 cohort options.
Cohort design + apprenticeship service setup
We draft the apprenticeship service contract, agree price, and load it into your DAS account ready for commitment.
Initial assessment + enrolment
Candidates complete initial assessment. We confirm eligibility, prior attainment, and target qualifications.
First learners on programme
Apprenticeship service start date confirmed. Monthly levy drawdown begins. You're now ahead of expiry.
Frequently asked questions
Does the 24-month rule apply to all levy?
Yes. Every monthly payment into your digital apprenticeship service account has its own 24-month expiry. Funds are spent in order — oldest first — whenever you start a new apprenticeship.
Can I use levy on existing employees, not just new hires?
Yes. You can apprentice an existing employee on a programme as long as the standard is substantively new learning for that person and meets the off-the-job training requirements. This is the most common use case for AI & leadership apprenticeships.
What if I'm too small for a full cohort?
We run regional and open cohorts every quarter. You can place one learner if you need to. Open cohort starts give you the most flexibility for a small headcount.
Do you work with our HR system?
We have integrations and reporting templates for the major HRIS platforms (Workday, SAP SuccessFactors, Cornerstone, HiBob, Sage People). Reporting to your L&D team is monthly by default and can be more frequent if you need it.