Can The Apprenticeship Levy Be Used For Existing Staff

When people hear the word “apprenticeship”, they often assume it applies only to new starters or school leavers. In reality, the Apprenticeship Levy can be used to train and upskill existing employees, making it a powerful tool for workforce development, retention, and long-term planning.

For employers facing skills shortages, rising recruitment costs, or the need to future-proof their teams, using the apprenticeship levy for existing staff can be one of the most cost-effective training options available.

This article explains how it works, what training is eligible, how funding applies to both levy-paying and non-levy employers, and how to make the most of your apprenticeship funding before it expires.

Can the Apprenticeship Levy Be Used for Existing Staff?

Yes. Employers can use apprenticeship funding to train existing employees of any age, provided the apprenticeship meets specific requirements.

To be eligible:

• The training must follow an approved apprenticeship standard
• The apprenticeship must deliver new knowledge, skills, and behaviours
• The role must allow the employee to develop beyond their current level
• They must be over 16, on PAYE and work at least 50% of their time in England.

This means apprenticeships are not limited to entry-level roles. They can be used to upskill employees in areas such as leadership, digital marketing, sustainability, operations, and specialist technical roles.

What Types of Training Are Eligible?

Apprenticeships funded through the levy are designed to be job-specific and nationally recognised. Each programme follows a defined apprenticeship standard approved by Skills England.

Eligible training includes:

• Leadership and management development, including Lean Six Sigma and Project management
• Digital and marketing skills
• Sustainability, ESG, and energy management
• Business operations and professional services
• Housing Management

The key requirement is that the apprenticeship supports meaningful development, rather than simply accrediting skills an employee already has.

Why Using the Levy for Existing Staff Makes Sense?

For many employers, training existing employees through this fund (now called the Growth and Skills Levy) is more effective than hiring externally.

More cost-effective than recruitment

Recruiting new staff is expensive and time-consuming. Apprenticeships allow you to develop capability within your current workforce, often at a fraction of the cost.

Improved retention

Employees who feel invested are more likely to stay. These qualifications provide clear development pathways, increasing engagement and loyalty.

Immediate business impact

Because employees remain in their role while training, new skills are applied directly to day-to-day work, supporting productivity and performance.

Stronger succession planning

Apprenticeships can be used to prepare employees for future leadership or specialist roles, reducing skills gaps over time.

How Funding Works for Levy-Paying Employers?

If your organisation has an annual pay bill over £3 million, you pay the Growth and Skills  Levy and access funds through your Digital Apprenticeship Service (DAS) account.

These funds can be used to:

• Train existing employees
• Train new starters
• Pay for end-point assessment

Importantly, Levy funds will soon expire after 12 months if unused, so using them to upskill existing staff is often the most practical way to avoid losing budget back to the Treasury.

What About Non-Levy Employers?

Employers with a pay bill under £3 million can still use these funds to train existing staff through co-investment.

Under this model:

• The government pays 95% of training and assessment costs
• The employer contributes just 5%, and in January, we are offering additional incentives to negate this fee

In addition, non-levy employers may be able to access levy transfers from larger organisations, reducing their contribution to 0% and making this training fully funded.

Choosing the Right Apprenticeship for Existing Employees

To get the most value from apprenticeship funding, employers should take a strategic approach.

Identify skills gaps

Look at where your business needs capability to grow, whether that’s leadership, digital skills, sustainability, or operational expertise.

Match roles to apprenticeship standards

Ensure the qualification aligns with the employee’s role and provides genuine development.

Plan for funding timelines

Levy-paying employers should monitor their DAS balance and expiry dates to avoid losing funds.

Work with an experienced provider

A knowledgeable training provider can help select suitable standards, structure delivery around business needs, and manage funding effectively.

Seeing Apprenticeships as a Strategic Tool

Using the apprenticeship levy for existing staff shifts apprenticeships from a recruitment tool to a strategic investment in your people. Instead of reacting to skills shortages, employers can proactively develop their workforce, improve retention, and build resilience for 2026 and the future

Whether you are a levy-paying organisation or an SME accessing co-investment, apprenticeships offer a structured, funded way to grow capability without impacting budgets.

Enroll an Apprentice

If you’re considering using apprenticeship funding to upskill your existing employees, Impact Academy can help you choose the right programme and make the most of your levy or co-investment options. Enroll an apprentice and start developing the skills your business needs for the future.

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