Helping Your Business Understand the Apprenticeship Levy

Still navigating the complexities of the Apprenticeship Levy in 2025? Many businesses are missing out on significant funding opportunities that the apprenticeship levy can be used for. So join us as we delve a little deeper and look at what the levy is and how it can be accessed to upskill your existing staff, overcome your hiring challenges, help with diversity and inclusion, and even help support managers.

What are the benefits of the apprenticeship levy for my business?

In April 2017, the UK government introduced the apprenticeship levy to have 3 million apprentices employed by 2020 and incentivise employers to take on apprentices to progress their businesses. Essentially the apprenticeship levy is a tax imposed by the government to contribute to apprenticeship funding for training programmes and courses spanning various industries.

Why does it matter in 2025? Beyond getting government funding for training, hiring apprentices for your business can increase productivity, retention, diversity and can give you a competitive edge. Aside from the positive benefits for your talent pool within your business, with National Insurance Contribution increase this year it means hiring apprentices is a more affordable and strategic way to increase your headcount. 

At Pareto, we specifically cater to sales training, supporting businesses with their sales strategies and nurturing the industry's top sales professionals from early career through to senior leadership.

Is my business eligible for the apprenticeship levy?

Everyone. Yes, you heard us correctly. Any business can use the apprenticeship levy to fund training courses for their staff. However, how much you spend on your monthly payroll will change how you can use it. If you pay over £3 million on payroll, you will have been paying a 0.5% levy. For you, the levy pot will cover the entire cost of any staff training.

If your payroll is less than £3 million, you will still be able to access the levy training scheme through an "incentive". The levy would pay for 95% of training costs, but you (as a business) would cover the other 5%. The levy is paid through PAYE monthly, and employers have the opportunity to declare the funding at the start of the financial year. The levy allows for up to £15,000 support, which can only be used on apprenticeship courses and end-point assessments. 

Why not use our Apprenticeship Levy Calculator to see how much you could access?

The wide range of training covered by the levy

One of the major misconceptions is that the levy can only fund apprenticeship-level courses. In reality, it can pay for training at any level. Many businesses will need skills that don't currently exist in their workforce with notable mention of AI-based skills.

So why not use the apprenticeship levy to help lift some of that pressure?

While also giving your existing staff access to training, support and help during a challenging time.

The apprenticeship levy can help graduates hone their basic skills and send senior staff on level 5 and 6 courses. Equip your workforce with essential leadership skills, or use the levy to pay for extra qualifications. The apprenticeship levy can be used in so many ways. If you're looking to access your levy pot, you can send your staff on our courses via contributions you made months ago. There's no need to pay additional funding into the levy pot if you've been spending the levy since April 2017. Instead, ensure your money works for you rather than just sitting there.

At Pareto, we provide top companies with the opportunity to utilise the levy with our sales and leadership training programmes. We will be your business's growth partner, bolstering the sales skills of your existing sales team and introducing you to the best young sales reps on the market. In addition, our range of sales coaching courses gives apprentices the time to improve their sales performance and become future sales leaders.   

Some of the apprenticeship courses we offer:

• Level 3 IT Technical Sales

• Level 3 Team Leader

• Level 3 Information Communication Technician

• Level 4 Sales Executive

• Level 5 Operational Manager

• And more... visit our apprenticeship pages to see the full list of apprenticeships we offer.

Use the levy to fill skills gaps by investing in your existing workforce.

Does the apprenticeship levy fund expire?

Yes, after 24 months, funds become unavailable to use and are removed from accounts. However, this doesn't mean the funding will disappear. 

Unused funds support new starts for non-levy paying employers or levy-paying employers who exceed their account balance, as well as existing learners.

Do you have to be 16 to be eligible for the apprenticeship levy?

The levy isn't age-specific but in the UK you do need to be 16 or over to start an apprenticeship; it isn't only for apprentices or recruits, nor is it exclusively for large organisations.

Ultimately, the apprenticeship levy can be used across every business level. It's a versatile tool and is not age dependent. Many organisations are using the levy to fund training across mid-senior managers. It's an attractive option for onboarding, helping to keep people's development at the forefront of your business even when your usual funds are lacking.

The apprenticeship levy can be used to deliver a broad range of results for many different issues.  

• Hiring young talent

• Overcoming an internal skills shortage

• Upskilling existing staff

• Improves productivity 

• Increases employee retention

At Pareto, we want to help you release the potential of your apprenticeship levy. It’s a versatile tool, and our team is here to help you get the most out of it. Explore our apprenticeship courses and discover how your business can benefit from apprenticeships. 

Consult with our experts to understand your options.