Understanding the Apprenticeship Levy

Understanding the Apprenticeship Levy

The Apprenticeship Levy plays an important role in supporting skills development across the UK, bringing together employers, training providers and learners to invest in future talent.

At Busy Bees Education & Training, we support employers across a range of sectors, including childcare, catering and professional services, helping them understand how the levy works and how it can be used to develop confident, capable teams.

What Is the Apprenticeship Levy?

The Apprenticeship Levy is a government initiative designed to fund apprenticeship training across England, while also supporting programmes across the wider UK.

It applies to employers with an annual payroll of over £3 million, who contribute 0.5% of their payroll into a dedicated fund. Across sectors, this funding can be used to support a wide range of roles, from Early Years Educators and Teaching Assistants to chefs, supervisors and leadership roles.

How the Apprenticeship Levy Works

Levy contributions are accessed through a digital apprenticeship service account, where employers can manage and spend their funds.

These funds can be used to pay for approved apprenticeship programmes, supporting both new recruits and existing employees looking to progress.

At Busy Bees Education & Training, we work closely with employers to ensure apprenticeship programmes align with business needs, whether that’s supporting a nursery team, developing kitchen staff or building future managers.

Making the Most of Your Levy

Funding Levy funds are available for 24 months before they expire, making it important for employers to plan ahead. This is due to change to 12 months in August 2026. For example, employers might use their funding to:

• • Support childcare practitioners progressing to Level 3 qualifications
• •Develop catering teams through professional chef training
• • Build leadership capability within management teams

Supporting Others Through Levy

Transfers A key feature of the Apprenticeship Levy is the ability to transfer unused funds.

Larger employers can transfer up to 50% of their unused funds to other businesses. This helps maximise the impact of the levy by supporting smaller organisations that may not have access to the same level of funding.

It also means that employers can play a direct role in developing skills across their wider industry and supply chain.

Supporting Employers of All Sizes

For employers who do not pay into the levy, apprenticeships remain an accessible and for smaller employers who do not pay into the levy, government support is available to make apprenticeships more accessible.

In most cases, the government covers 95% of apprenticeship training costs, with employers contributing just 5%. This cost can be reduced even further when levy transfers are used.

This makes apprenticeships a practical and cost-effective option for small businesses to invest in training and development.

Why Apprenticeships Matter at Busy Bees Education & Training

At Busy Bees Education & Training, apprenticeships are at the heart of everything we do. Our apprenticeships are designed to support both learners and employers, combining recognised qualifications with hands-on, real-world experience. We support employers across multiple sectors to:

• Develop skilled, confident teams
• Support career progression from entry-level roles through to leadership
• Improve staff retention through meaningful development opportunities
• Build a future-ready workforce aligned to business goals

Whether in early years settings, kitchens, offices or management teams, apprenticeships create lasting value for both individuals and organisations.

About Busy Bees Education & Training

Are you interested in developing your team or becoming an apprentice? We offer a range of apprenticeships across childcare and education, catering, leadership and professional services, helping individuals and employers grow with confidence.