Learning at Work Week: The Hidden Benefit of Apprenticeships

As part of Learning at Work Week in the UK, we’re shining a light on one of the hidden benefits of apprenticeships and the Growth & Skills Levy for employers.

When most business owners think of apprenticeships, they picture young school leavers learning a trade. But this narrow view overlooks one of the most powerful, yet underutilised, tools available to businesses today: using the Apprenticeship Levy to train and upskill their existing staff.

For employers, this isn’t just a “nice-to-have” it’s a strategic opportunity hiding in plain sight.

Understanding the Apprenticeship Levy

Introduced in 2017, the Apprenticeship Levy (now the Growth & Skills Levy) is a tax on UK employers with an annual payroll over £3 million. These businesses contribute 0.5% of their wage bill to the levy, which is then stored in a digital account and can be spent on apprenticeship training. If unspent, funds expire after 24 months.

For many employers, the Levy is viewed as just another tax but that’s a mistake. It’s not a sunk cost. It’s a ring-fenced fund to invest in your workforce.

A Strategic Approach to Workforce Development

The hidden benefit? You can use the Levy not just to bring in new apprentices, but to upskill your current employees across all levels from entry-level, to senior leadership.

There are over 600 approved apprenticeship standards covering everything from digital marketing and data analysis to operations management and senior leadership.

This flexibility means businesses can align apprenticeship training with specific skill gaps, business goals, and succession plans.

For example:

• A warehouse operative can train as a supply chain leader.
• A customer service assistant can become a team manager.
• An IT support staffer can train in cybersecurity or software development.
• Senior staff can enrol in degree-level apprenticeships like the Level 7 Senior Leader Apprenticeship (equivalent to an MBA).

Why Upskill Through Apprenticeships?

1. Maximise Return on Levy Contributions
If you’re paying the Apprenticeship Levy, it makes sound financial sense to claim it back through internal training. Unused funds expire meaning you’re essentially giving money away if you don’t act.

2. Build a Future-Proof Workforce
Instead of hiring externally (which is costly and risky), developing in-house talent ensures your workforce evolves with the business. Apprenticeships foster loyalty and reduce recruitment and onboarding costs.

3. Tailored Learning with Real Impact
Apprenticeship training isn’t abstract. It’s embedded in day-to-day roles, meaning employees learn skills they can apply immediately resulting in measurable productivity gains.

4. Boost Retention and Morale
Investing in staff development demonstrates trust and commitment. It increases engagement and loyalty particularly among mid-career professionals who may feel overlooked in traditional training models.

5. Leadership and Diversity Development
Higher-level apprenticeships are a great tool for promoting internal talent into leadership roles especially underrepresented groups who might not have had access to traditional academic routes.

Overcoming Common Misconceptions

Many employers assume apprenticeships are time-consuming or limited to manual trades. In reality, programmes are highly flexible, often delivered via blended learning, and tailored around your business needs.

Others worry about productivity losses while staff train. But apprenticeship providers work with employers to minimise disruption, and the long-term gains far outweigh the short-term adjustment.

Getting Started

If you’re a levy-paying employer, check your Apprenticeship Service account to see how much funding is available. If you’re a non-levy payer, the government will still fund 95% of apprenticeship training costs.

Next, identify roles and departments where skill gaps exist or future needs are emerging. Work with a registered apprenticeship training provider to design a programme that fits your business strategy.

Our View

Apprenticeships aren’t just for new recruits, they’re a smart, strategic way to use money you’re already paying to train, develop, and retain your current workforce. With skills shortages intensifying across the UK, using the Apprenticeship Levy to invest in your own people could be one of the most effective decisions your business makes this year.