What the new Growth and Skills Levy means for apprenticeships and workforce training

As we celebrate National Apprenticeship Week 2026 and its theme of Skills for Life, there’s an important change happening that will shape how employers invest in training and apprenticeships across the UK. 

The Government is introducing a new Growth and Skills Levy, which will replace the current Apprenticeship Levy and give employers more flexibility in how they develop their People. 

For the housing and construction sector, where skills shortages continue to impact services, safety and long-term growth, this new levy is a real opportunity to build stronger, more capable workforces. 

At PfP Thrive, our focus has always been on helping employers close the skills gap through practical, high-quality training. Here’s what you need to know about the Growth and Skills Levy and how it could support your organisation. 

Jump to:  

• What the Growth and Skills Levy is
• What the Growth and Skills Levy replaces and what remains the same
• What this means for employers thinking about apprenticeships
• Key changes employers should be aware of
• Why this matters for housing and construction 

What the Growth and Skills Levy is 

The Growth and Skills Levy builds on the existing Apprenticeship Levy system but expands how training funds can be used. 

Employers with a UK wage bill over £3 million will continue to pay into the levy, but instead of only funding full apprenticeships, they’ll now be able to use their funds for a wider range of skills training - including shorter, targeted learning programmes alongside apprenticeships. 

From April 2026, this will include modular apprenticeship units - short courses designed to develop specific skills quickly, such as trade skills, digital capability, safety, compliance and emerging technologies. 

You can read the official Government guidance here 

This shift is designed to help employers respond faster to skills shortages, something the housing and construction sector urgently needs. 

What the Growth and Skills Levy replaces and what remains the same 

The Growth and Skills Levy is taking the place of the current Apprenticeship Levy, but it isn’t a complete overhaul. Instead, it’s an update designed to make skills funding work better for employers and learners. 

What stays the same 

Employers with a UK wage bill over £3 million will still pay into the levy, and those funds will continue to support workforce training and development. Apprenticeships will remain a core part of how organisations build long-term skills and career pathways. 

What’s changing 

Under the old system, levy funds could mainly be used for full apprenticeship programmes. While valuable, this didn’t always allow employers to respond quickly to skills gaps. 

With the Growth and Skills Levy, employers will now be able to use their funds more flexibly, allowing for apprenticeships that provide long-term career development along with shorter, more targeted training aimed at building specific skills quickly.  

For housing and construction employers working hard to close skills gaps, this means training can be shaped around real workforce needs - whether that’s developing new tradespeople, improving compliance standards, or upskilling existing Colleagues. 

What this means for employers thinking about apprenticeships 

For employers across housing and construction, the Growth and Skills Levy makes investing in People easier and more effective. 

Here’s how: 

More flexibility to build the skills you need 

You’ll be able to use levy funds for apprenticeships and shorter training programmes, helping you upskill existing Colleagues as well as develop new talent. 

Faster responses to skills shortages 

Short modular training allows organisations to address urgent gaps in areas like repairs, compliance, safety and technical skills without waiting years for qualification completion. 

Stronger career pathways 

Apprenticeships still provide structured progression and long-term capability, while flexible training supports continuous development across your workforce. 

For a sector under pressure to deliver safe homes, high standards and future growth, this blended approach is a major step forward. 

Key changes employers should be aware of 

Alongside the introduction of the Growth and Skills Levy, there are a few important updates that employers should consider as they plan their training strategies: 

Shorter training where appropriate 

Some apprenticeships will now have reduced minimum durations where these better fit the role. This can help employers build skills more quickly when a full-length programme isn’t necessary. 

English and maths requirements updated 

Apprentices aged 19 and over will no longer be required to hold separate English and maths qualifications to complete an apprenticeship. These skills can instead be demonstrated through practical workplace learning as part of the training. 

Co-investment rates will change 

Under the current system, when an employer uses levy funds to support training, the Government normally contributes 95% with the employer covering 5% of the cost for non-levy paying employers. 

With the Growth and Skills Levy reforms, this co-investment rate will change, meaning employers will cover a larger proportion of training costs (for example, around 25%) while the Government covers the remaining 75%. 

It’s important for employers to be aware of this shift, as it may affect budgeting and planning for training and development - particularly for smaller and medium-sized organisations. 

Why this matters for housing and construction 

The Growth and Skills Levy recognises something PfP Thrive has always believed: 

one size does not fit all when it comes to training. 

For housing and construction employers, it means you can: 

• Build trade skills faster
• Improve compliance and safety standards
• Develop future leaders
• Support career changers and new starters
• Strengthen retention and progression
• All while directly tackling the skills shortages that continue to challenge the sector. 

This is exactly the kind of flexible, practical approach needed to build Skills for Life — for People, for organisations and for Communities. 

How PfP Thrive can support your organisation 

At PfP Thrive, we specialise in apprenticeships and bespoke training programmes designed specifically for housing and construction. From trade skills and compliance to leadership development, we help employers turn training investment into real workforce capability. 

The Growth and Skills Levy gives organisations more choice - and we’re here to help you make the most of it.