What Employers Need to Know — and How Linden Can Help
From 1 August 2026, important changes are being introduced to the apprenticeship levy funding system. These updates are designed to better align levy balances with the government’s available budget — but they will also impact how employers plan, budget, and maximise their apprenticeship investment.
At Linden, we’re here to guide employers through these changes, helping you adapt your strategy, protect your training plans, and continue developing talent with confidence.
What’s changing — at a glance
From August 2026:
The 10% government top‑up will be removed for new funds
New levy funds will expire after 12 months
Employer co‑investment will increase for new apprenticeship starts
✅ Apprentices aged under 25 will be 100% government funded
These shifts make forward planning more important than ever — and that’s where Linden adds real value.
With the right planning, employers can still access fully funded apprenticeships — especially when focusing on early‑career talent.
The good news? Apprenticeships remain a powerful, fully funded option for young talent, and Linden is here to navigate employers through every change, ensuring you stay compliant, cost‑effective, and future‑focused.
What will change from 1 August 2026
How funds enter your account
From August 2026:
You will still receive monthly levy funds based on your pay bill
New funds will no longer receive the 10% government top‑up
New funds will expire after just 12 months if unused
✔️ Linden will help employers forecast spend, prioritise starts, and avoid losing valuable funds.
What happens to existing funds
Funds that entered your account on or before 31 July 2026 will:
Continue to expire after 24 months
Be used first when paying for training
Linden supports employers in mapping old vs new funds, so nothing goes to waste.
If you don’t use all your levy each year
Existing apprenticeships will continue as planned
Your account balance may gradually reduce
You can still invest in:
Apprenticeships
Growth and Skills Levy products
💡 Linden works with employers to align training with business objectives — ensuring levy spend delivers real workforce impact.
If you use all your levy funds
When levy funds are exhausted, employers move into co‑investment, where training costs are shared with government.
👉 From 1 August 2026, co‑investment rules change — but with an important exception for younger apprentices.
Co‑investment rates explained
When your levy funds run out:
Apprentices aged 25 and over
Starts up to and including 31 July 2026
Employer pays 5%
Government pays 95%
Starts from 1 August 2026
Employer pays 25%
Government pays 75%
✅ Apprentices aged under 25 (new from 1 August 2026)
100% government funded
No employer co‑investment required
Linden insight: Apprenticeships for under‑25s will remain one of the most cost‑effective recruitment and development routes available to employers.
Example: Project Manager Level 4 Apprenticeship (£9,000 funding band)
If your levy funds have run out:
Apprentice aged 25 or over
Start before 1 August 2026
Employer pays £450
Government pays £8,550
Start from 1 August 2026
Employer pays £2,250
Government pays £6,750
✅ Apprentice aged under 25 (from 1 August 2026)
Employer pays £0
Government pays £9,000 (100%)
How Linden will navigate you through the changes
Funding rules may be shifting — but with Linden as your partner, apprenticeships remain a powerful, affordable way to build future‑ready teams.
We will help you:
Understand exactly how the reforms affect your organisation
Plan levy spend before shorter expiry deadlines
Maximise fully funded opportunities for under‑25s
Design cost‑effective apprenticeship and unit‑based programmes
Protect your budget while growing talent sustainably
The system is changing — but with Linden, you’ll stay one step ahead.
📞 Speak to Linden today to plan confidently for August 2026 and beyond, call 0800 298 0632 or email Info@lindenmanagement.org.uk
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