The Autumn Budget delivered on 26 November 2025 marks a pivotal shift in how UK employers fund and deliver workforce training. Whether you’re a levy-paying organisation or an SME, these changes will impact your approach to apprenticeships and skills development from 2026 onwards.
Here’s what you need to know, along with guidance on how to turn these reforms into opportunities for your business.
For Levy-Paying Employers: Three Critical Changes
If your organisation pays the apprenticeship levy, three significant adjustments are coming that demand immediate attention:
1. The End of the 10% Top-Up
Previously, every pound you contributed to the levy received a 10% government boost in your digital account. That uplift is being withdrawn. Your £1 million levy bill will now give you exactly £1 million to spend, not £1.1 million.
Impact: Your training budget just got 10% tighter. Strategic planning becomes essential.
2. Use It or Lose It: 12-Month Expiry Window
The window to spend levy funds is being halved from 24 months to just 12 months from when contributions enter your account. Unused funds will expire faster.
Impact: Tighter deadlines mean you’ll need rigorous tracking of when funds arrive and when they’ll lapse. Reactive training planning could cost you thousands in expired levy.
3. Higher Co-Investment Costs
Once your levy pot runs dry, the government’s contribution to further training costs drops from 95% to 75%. Your share increases from 5% to 25%.
Impact: Running out of levy funds becomes significantly more expensive. Careful forecasting and prioritisation of training investments will be crucial to avoid this scenario.
For SMEs: The Opportunity You Can’t Afford to Miss
Free Training for Your Future Workforce
Here’s the game-changer many SMEs haven’t heard about yet: training for under-25 apprenticeships is now completely free for small and medium-sized businesses. The government has invested £820 million over three years in this Youth Guarantee programme.
The age threshold has been raised from under-22 to under-25, meaning you can now access fully-funded apprenticeship training and assessment for a wider pool of early-career talent.
What this means for you:
- Zero cost for training young apprentices aged 16-24
- Access to quality-assured programmes without the financial barrier
- A genuine pathway to build your future workforce while managing cash flow
- Government backing to invest in the next generation
For SMEs facing skills shortages or looking to grow their teams, this represents an unprecedented opportunity to develop talent without upfront training costs.
The Flexibility Revolution: Apprenticeship Units Arriving April 2026
The most exciting development in this Budget isn’t about restrictions, it’s about flexibility.
From April 2026, levy-paying employers will be able to spend their funds on Apprenticeship Units: short, modular training courses extracted from existing apprenticeship standards. Think of them as bite-sized, laser-focused skill interventions.
What Are Apprenticeship Units?
Rather than committing to a 12-18 month full apprenticeship, you’ll be able to purchase specific modules targeting immediate skill gaps. The initial rollout focuses on high-demand areas:
- Artificial Intelligence
- Digital technologies
- Engineering disciplines
Why This Matters
Traditional apprenticeships are powerful but require long-term commitment. Apprenticeship Units let you:
- Upskill experienced staff rapidly without pulling them from their roles for extended periods
- Respond quickly to emerging technology needs (like AI adoption)
- Test training pathways before committing to full qualifications
- Deploy targeted interventions where you need them most
For organisations navigating digital transformation, AI implementation, or automation, this flexibility could be transformative.
Your Action Plan: What To Do Now
Don’t wait until 2026 to respond to these changes. Here’s how to prepare:
1. Audit Your Levy Position Immediately
With the 12-month expiry window, you need complete visibility of:
- Your current levy balance
- When new contributions arrive each month
- When existing funds will expire
- Your planned training pipeline
Action: Run a levy forecast for the next 18 months. Identify any funds at risk of expiring.
2. Accelerate High-Value Training Plans
If you have levy funds approaching expiry, now is the time to act. Prioritise training that:
- Addresses critical skill gaps
- Supports strategic business objectives
- Can be deployed quickly
Action: Review your skills priorities and fast-track programmes that align with business transformation goals, particularly in digital and AI capabilities.
3. Choose Future-Ready Training Partners
As Apprenticeship Units launch in 2026, you’ll want partners who can:
- Deliver standard-aligned programmes today
- Pivot to modular delivery as units become available
- Design learning pathways that flex between units and full apprenticeships
Action: Evaluate whether your current training providers are positioned to support modular delivery models.
4. Prepare Your Organisation for Shorter Learning Cycles
Apprenticeship Units mean more frequent, shorter training interventions. This requires:
- Line managers’ understanding of the new model
- Scheduling that accommodates rapid upskilling
- Integration of learning into operational rhythms
Action: Begin conversations with leadership and line managers about building learning time into business-as-usual activities.
How Zenith Training Can Support You Through These Changes
At Zenith Training, we’re already preparing for the Growth & Skills Levy reforms. Our programmes are built on national standards, positioning us to support you as funding models evolve and modular options emerge.
We can help you:
Navigate the new landscape: From levy forecasting to compliance with the 12-month expiry rules, we’ll help you maximise your funding before it lapses.
Deploy targeted, high-impact training: Our standards-aligned programmes are designed for flexibility, ready to adapt as Apprenticeship Units roll out in 2026.
Build skills pathways: Whether you need short interventions or full qualifications, we’ll create learning journeys that align with your business goals and funding reality.
Plan strategically: Work with us to map your skills priorities, levy spending timeline, and readiness for modular training options.
SME support: If you’re a small or medium-sized business, we’ll help you access the Youth Guarantee and build your early-career talent pipeline, completely free of training costs.
The Bottom Line
The Autumn Budget 2025 represents both challenge and opportunity. Levy-paying employers face tighter constraints and shorter timelines, but gain unprecedented flexibility through Apprenticeship Units. SMEs can now access fully-funded training for young people, removing a major barrier to talent development.
The organisations that will thrive are those that treat this moment as a catalyst, tightening their levy planning, prioritising high-value capabilities (especially in AI and digital), and preparing for a more modular, responsive approach to workforce development.
The reforms take effect in 2026, but the time to act is now.
Ready to make the most of your training budget? Get in touch with Zenith Training to discuss your strategy.