On 16 March 2026, the Government confirmed a major change to the expiry period for apprenticeship levy funds. This change will significantly affect how employers plan, manage, and spend their levy in the years ahead.
What’s Changing?
Currently, apprenticeship levy funds expire 24 months after they enter an employer’s levy account. If unspent, these funds return to the Government.
From 1 August 2026, this expiry window will be reduced to 12 months.
However, the change applies only to new funds entering levy accounts from 1 August 2026 onwards.
Important Clarifications... Any levy funds already in employer accounts before 1 August 2026 will continue to follow the current 24 month expiry rule. Only newly added funds will expire after 12 months. Employers will therefore need to manage two sets of expiry timelines simultaneously during the transition period.
Why Is the Expiry Period Changing?
The Government intends to:
Improve levy utilisation
Reduce the build up of unused surpluses
Redirect unspent funds toward priority early career apprenticeships
Encourage employers to plan apprenticeship starts more proactively
A shorter expiry window is designed to ensure that levy funds are used quickly and effectively.
What Does This Mean for Employers?
The reduction to a 12 month expiry period is likely to be one of the most impactful changes for large employers, especially those with fluctuating recruitment cycles or complex workforce planning.
Key Implications 1. Increased pressure to plan ahead Employers will need to forecast apprenticeship demand earlier and more accurately. 2. Higher risk of losing funds Without careful management, levy expiry will become more likely. 3. Greater importance of ongoing workforce conversations Development needs across departments will need to be reviewed more frequently. 4. Enhanced need for external support Many organisations will need help balancing levy usage, expiry prevention, and apprenticeship suitability.
How Linden Can Help You Prepare
As the expiry window tightens, strategic levy management becomes even more crucial.
Linden can support with:
Levy forecasting and expiry mapping
Workforce needs analysis
Identifying suitable apprenticeship pathways under the new rules
Redesigning leadership development where standards are withdrawn
Fast tracking planned cohorts to maximise levy usage before the change
We’ll also keep all employers updated on any further guidance issued by Skills England or the Apprenticeship Service.
Our Message to Employers....
While these changes present challenges, they also create opportunities to strengthen early career talent pipelines and maximise the value of training investment.
If you’d like support reviewing your levy position or planning your 2026–27 apprenticeship strategy, our team is here to help.
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