Levy vs Non-Levy Apprenticeships

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Understanding apprenticeship funding

Where does your business sit?

Every UK employer falls into one of two apprenticeship funding categories: Levy or Non-Levy. Knowing your category is the first step in unlocking government-backed training opportunities that save money while boosting staff performance.

At Impact Academy, we help employers navigate the apprenticeship levy system, access non-levy funding, and enrol team members on courses that deliver measurable results.

What is the Apprenticeship Levy?

The Apprenticeship Levy is a government initiative introduced in 2017 to encourage large employers to invest in staff training. It applies to organisations with a payroll of over £3 million per year.

  • Levy-paying employers contribute 0.5% of their annual payroll into a digital  account.
  • The government tops this up by 10%, increasing available funds.
  • Funds must be spent on apprenticeship training and end-point assessment.
  • Unused funds expire after 24 months, meaning lost money if not used.

Fact: Over £3 billion in levy funds have expired since the scheme began. Don’t let your business miss out.

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Backed by leading education bodies & partners

What about Non-Levy Employers?

If your payroll is under £3 million per year, you are a Non-Levy Employer.

  • You contribute only 5% of the training cost. The government funds the remaining 95%..
  • Employers with fewer than 50 staff pay nothing when hiring a 16-21 year-old apprentice – the government covers 100% of the cost.
  • Incentive payments are available for hiring new apprentices.

Result: Non-levy apprenticeships are one of the most cost-effective workforce development solutions in the UK.

Why invest in apprenticeships?

Whether you’re a levy or non-levy employer, apprenticeships deliver proven benefits:

  • Strong ROI: Research shows every £1 invested in apprenticeships can generate up to £28 in return through productivity gains, lower recruitment costs, and improved retention.
  • Bespoke Skills: Apprenticeships are aligned with your business goals covering energy, sustainability, digital, marketing, housing, leadership and more.
  • Retention & Loyalty: Employees trained through apprenticeships are more engaged and less likely to leave..
  • Future-Proofing: Build the next generation of skilled staff and stay ahead of industry changes.
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Levy vs Non-Levy: Which are you? 

  • Payroll over £3 million? You’re a Levy Employer – don’t let your unused funds expire.
  • Payroll under £3 million? You’re a Non-Levy Employer – get up to 100% government-funded training.

Either way, Impact Academy makes it simple: we manage the funding process, handle compliance, and ensure your apprenticeships deliver real value.

Take the Next Step

Apprenticeships are one of the smartest investments you can make in your business. With government funding covering the majority (if not all) of the cost, there’s never been a better time to upskill your workforce.

Find out whether you’re levy or non-levy and start saving today.

Contact us

Comparison Table

Feature 

Levy Employers 

Non-Levy Employers

Who qualifies? 

Businesses with an annual payroll of over £3 million

Businesses with an annual payroll of under £3 million

Funding contribution

0.5% of payroll paid into a digital account

5% of training cost (government pays the other 95%)

Government top-up

10% extra added to your levy funds

100% funding for 16–21 apprentices if you have fewer than 50 staff

Expiry rules 

Unused levy funds expire after 24 months

No expiry – funding secured at enrolment

Training cost to employer

Training paid for from levy account (no extra cost if funds available)

As little as £0 – 5% of cost, depending on apprentice age and business size

Risk of losing funds

High if funds aren’t used 

None – no pot to lose

Incentives 

Maximise levy usage to avoid losing money

Incentive payments available for hiring new apprentices

Best for 

Large employers who want to make the most of money they’re already paying
SMEs looking for a low-cost way to upskill and grow their team

Let’s future proof your workforce

Upskilling your workforce doesn’t have to be complicated or costly. 

  Understand if your business qualifies for 95–100% funded training.

 Discover which programmes will deliver the biggest impact for your sector.

 Learn how to enrol existing staff quickly with minimal disruption.

Simply use the calendar to find a time that works for you.

"I cannot express enough how grateful I am for the opportunity to be a part of your apprenticeship program. The program provided me with the chance to learn and grow in a supportive and challenging environment. The combination of classroom learning and real-world projects allowed me to apply what I learned immediately."
Laura
Apprentice
"It was a transformative experience for me. From day one, I felt welcomed and supported by the entire staff. The program was well-structured and provided a seamless transition into the professional world. The opportunity to work alongside experienced professionals allowed me to gain practical skills and insights that simply cannot be taught in a classroom setting."
Greg
Apprentice
"I’m very grateful to have completed your JEM Apprenticeship. It gave me the chance to learn and grow in a supportive environment. The combination of classroom learning and real-world projects allowed me to apply what I learned immediately. The Heat loss lesson was my favourite, and I used most of these calculations in my energy project for end point, which saved my department £4000/month after we replaced the equipment."
Mohammed
Apprentice
"Enrolling in your apprenticeship program was one of the best decisions I've made for my career. The hands-on experience and mentorship provided by your team were invaluable. Not only did I learn practical skills that are directly applicable to my field, but I also gained confidence in my abilities."
James
Apprentice

Real Results for UK Businesses

See how employers like you have upskilled teams, improved retention, and boosted productivity with Impact Academy’s funded training.

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