Levy unchanged, but Level 7 apprenticeships are changing
The rate and threshold for the apprenticeship levy remain unchanged at 0.5% of an employer’s annual pay bill for employers with an annual pay bill of more than £3m.
In the 2025 Budget, the Chancellor announced that a proportion of the Growth and Skills Levy uplift, which was announced in the spending review, would be allocated to fully fund apprenticeships for small and medium enterprises who take on an eligible apprentice aged under 25.
Level 7
As previously announced, funding for Level 7 apprenticeships is changing. From 1 January 2026, Level 7 apprenticeships will continue to be government-funded for young people aged 16 to 21, and for care leavers or those with an Education, Health and Care Plan (EHCP) who are under 25 at the start of their apprenticeship in England.
Any apprentice who started a Level 7 apprenticeship before 1 January 2026 will continue to be funded through to completion. However, new starters on apprenticeships after this date who are 22 or older and not in receipt of on an EHCP will no longer be government funded.
