How Levy Funding Supports Skills Development for Your Existing Staff?

Many employers still associate apprenticeships with entry-level recruitment. In practice, the Growth & Skills Levy funding is one of the most effective tools for developing the skills of your existing workforce.

At a time when skills shortages persist, recruitment costs are rising, and retention is critical, using levy funding for internal development allows organisations to build capability from within. When approached strategically, the levy becomes a dedicated skills and development budget, rather than a mandatory tax.

This article explains how levy-funded apprenticeships support staff development, how training works for existing employees, and why this approach delivers long-term value for employers.

Using The Apprenticeship Levy For Existing Staff Development

Employers can use Levy funding to train existing employees of any age, provided the programme meets eligibility requirements.

To qualify:

• Training must follow a nationally approved apprenticeship standard
• The programme must deliver new knowledge, skills and behaviours
• The apprenticeship must support progression beyond the employee’s current role or capability

This means apprenticeships are not limited to junior roles. Levy-funded programmes can be used to develop managers, specialists, and future leaders across areas such as leadership, digital marketing, sustainability, operations, and professional services.

This approach places apprenticeship levy staff development at the centre of workforce planning, rather than treating apprenticeships as a recruitment tool alone.

How Levy-Funded Training Works For Current Employees?

Levy-funded apprenticeships are designed to fit around work, allowing employees to remain productive while developing professionally.

Training typically includes:

• Structured learning delivered by an approved provider
• Practical application of skills within the employee’s role
• Ongoing assessment aligned to the apprenticeship standard
• Formal end-point assessment to confirm competence

Because the learning is role-relevant, employees apply new skills immediately, reinforcing learning and delivering measurable business impact. This makes levy funding particularly effective for skills development levy initiatives targeting real organisational needs.

Flexibility Introduced Through The Growth And Skills Levy

The shift towards the Growth and Skills Levy is intended to increase flexibility in how apprenticeships are delivered, while maintaining national quality standards.

For employers, this means:

• Clearer, standardised training requirements
• Greater flexibility in how learning is structured around work
• Reduced administrative burden compared to earlier models
• More employer control over how levy funding is used

These changes make it easier to integrate apprenticeships into existing development frameworks and use the levy as a long-term skills and development levy, rather than a short-term funding pot.

Why Levy Funding Is A Powerful Development Budget

Using levy funding to upskill existing staff delivers several strategic advantages.

Closing skills gaps internally

Rather than recruiting externally, employers can address capability gaps by developing people who already understand the organisation, its systems, and its culture.

Supporting career progression

Levy-funded apprenticeships provide structured pathways for progression, helping employees move into more senior or specialist roles with confidence.

Improving retention

Investment in development increases engagement and loyalty. Employees who see clear progression opportunities are more likely to stay and grow with the business.

Reducing recruitment costs

Hiring externally is expensive and uncertain. Developing internal talent through apprenticeship levy staff development reduces reliance on recruitment agencies and shortens time-to-competence.

Strengthening Succession Planning

One of the most overlooked benefits of levy-funded training is its impact on succession planning.

By aligning apprenticeships with future skills needs, employers can:

• Prepare employees for leadership roles
• Develop technical specialists internally
• Build resilience against skills shortages
• Create a sustainable talent pipeline

This proactive approach ensures organisations are not forced into reactive hiring when key roles become vacant.

Making The Most Of Levy Funding

To maximise the value of levy-funded staff development, employers should take a strategic approach.

Key steps include:

• Identifying current and future skills gaps
• Mapping roles to appropriate apprenticeship standards
• Planning programme starts to avoid levy funds expiring
• Working with an experienced provider who understands funding rules and business needs

When used effectively, levy funding becomes a long-term investment in workforce capability, rather than a compliance exercise.

Viewing Levy Funding As A Strategic Tool

The most successful employers no longer ask whether they should use their levy. Instead, they ask how to use it to deliver the greatest impact.

By focusing on skills development for existing staff, organisations can:

• Build capability from within
• Strengthen retention and engagement
• Reduce recruitment dependency
• Support sustainable growth

Levy-funded apprenticeships provide a structured, funded way to develop the people you already rely on.

Request A Business Assessment

If you want to understand how levy funding could support skills development within your existing workforce, Impact Academy can help. Request a business assessment to explore suitable programmes, funding options, and a development plan aligned with your organisation’s goals.

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