Business 16 Maximising the apprenticeship levy The IMI demystifies post-reform apprenticeship levy funding to help businesses bring new talent into the workforce F or many job roles across automotive – both technical and non-technical – apprenticeships have been an established and reliable route for employers to future-proof their business. And the Apprenticeship Levy has played a critical role in enabling organisations to tap into this important talent pipeline, providing funding support. However, on 1st August 2026, there was a shift in how the Levy could be accessed. With the skills gap continuing to be a major issue for the sector, the IMI believes it is vital that employers of all sizes understand how to get the most out of the new levy funding mechanism. This will mean clear career pathways can be offered so that the next generation sees the industry as a modern, technology-driven and futurefacing place to build their future. Who pays into the levy – and who benefits? The levy applies to any employer with an annual wage bill over £3 million and is collected monthly through PAYE at 0.5% of the total annual wage bill. Whilst most SMEs in the automotive aftermarket, including independent garages and bodyshops, do not have to pay the levy, they can still benefit from it and receive funding to cover training and assessment costs. For those contributing to the levy, the oldest funds in their levy account are spent first and, crucially, will expire if not used within 24 months for funds added up to 31 July 2026 and 12 months for funds added after this date. And that means unused levy contributions are quietly lost on a rolling monthly basis if there’s no active spending plan. But the good news is that levy-paying businesses can transfer up to 50% to another business if it will not be spent before expiring. And that means funds can be transferred to any other employer, not just connected companies, and is often used to support franchises or supply chain partners, for example. The government’s Levy-Transfer Matching (LTM) service connects levy-payers who have unused funds with other employers seeking additional support, to facilitate levy transfers. The reality is, though, that many large levy-paying automotive employers, including main dealer groups, OEMowned retail networks, and large fleet or leasing firms, let funds expire unused. For these businesses that do not need the full funding, this money is simply
RkJQdWJsaXNoZXIy MjQ0NzM=