Invest in Your Workforce Without Wasting Your Levy

If your organisation pays the Apprenticeship Levy, those funds can be used to invest in the skills of your workforce through approved apprenticeship programmes.

At Knights Training Academy, we help employers make the most of their levy funding by identifying suitable training, managing the process and supporting apprentices from enrolment through to completion.
Levy plan in 30 minutes



What Is the Apprenticeship Levy?



The Apprenticeship Levy is a UK government initiative that helps employers invest in workforce development through apprenticeships.

In England, employers with an annual pay bill of more than £3 million pay the levy at 0.5% of their annual payroll, with a £15,000 annual allowance reducing the amount due.

The money is paid into the employer’s digital apprenticeship account, where it can be used to pay for approved apprenticeship training and assessment.







What does the Levy cover? 

Allowed: Training delivery

Use levy funds for approved training delivery, including course fees and tuition for eligible training. This is the core purpose of levy spend and is usually the simplest to evidence.

Allowed: End-point assessment

Use levy funds for the end-point assessment required for an apprenticeship. This includes assessment planning, administration, and the final assessment activity carried out by an approved assessment organisation.

Allowed: Off-the-job training

Use levy funds for the structured off-the-job learning time that supports the apprenticeship. Keep clear records of training hours, content, and attendance to meet audit expectations.

Not allowed: Wages and overtime

Levy funds cannot be used to pay apprentice wages, overtime, bonuses, or backfill for staff time. Plan for these costs separately in your training budget and workforce plan.


Not allowed: Equipment and uniforms

Levy funds cannot be used for tools, PPE, laptops, uniforms, or other capital items. If equipment is required, fund it through operational budgets or other approved support routes.


Not allowed: Travel and subsistence

Levy funds typically cannot cover travel, accommodation, meals, or other expenses linked to attending training. Confirm any exceptions with your provider and document what is billed to levy.

Why Invest: Business Benefits of Apprenticeships

Build capability you can measure

Train people on the exact skills your roles need. Track progress, skill sign-off, and job performance improvements over time.

Improve retention and reduce hiring costs

Grow talent from within and support clear progression. You can cut turnover, re-hiring, and onboarding time for key roles.

Increase productivity with job-ready learning

Apprentices learn while working, so training links directly to daily tasks. You can see faster competence and fewer delays.

Strengthen compliance and reduce risk

Use structured training plans to build consistent, auditable competence. This supports safer work practices and fewer incidents.

Support workforce planning and succession

Create a steady pipeline for future supervisors and specialists. You can plan coverage for growth, change, and retirements with less disruption.

How We Help

We support employers from planning through delivery so your apprenticeship levy funding is used correctly and your learners stay on track.

  • Levy planning and spend forecast: map your priorities, estimate costs, and plan start dates

  • Funding and compliance checks: confirm eligibility, required evidence, and audit-ready records

  • Programme setup and onboarding: skills scan, training plan, and employer and learner onboarding

  • Apprenticeship delivery and coaching: teaching, progress reviews, and manager engagement

  • Reporting and levy spend tracking: clear updates on attendance, progress, and levy usage

FAQ

Do we need to pay the levy, and how do we pay it?

Levy payments depend on your payroll size and whether you meet the levy threshold. If you are liable, you pay it through your normal payroll process to HMRC. We can help you confirm your status and set up a simple monthly check.

Can we use levy funds to train existing employees?

Yes. Levy funds can be used for eligible training for both new hires and existing employees, as long as the training meets the funding rules. We help you match roles to suitable training and keep the evidence you need for compliance.

Can levy funds cover wages or time away from work?

No. Levy funds cannot be used to pay wages, salaries, travel, or backfill costs. They can only be used for eligible training and assessment costs. We will flag what is and is not claimable before you commit.

Do levy funds expire if we do not use them?

Yes. Unused funds expire after a set period, so it helps to plan training ahead and draw down funds steadily. We can build a simple training plan that fits your operations and helps reduce unused balance.
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