Levy reform and apprenticeship units: What they mean for employers and How BMet can help

Written by Rebecca Bond  from Birmingham Metropolitan College (BMet)

The UK’s apprenticeship system is changing — and for employers across the West Midlands, these reforms present a real opportunity to rethink how skills training supports business growth.

With the reform of the Apprenticeship Levy and the introduction of new apprenticeship units, employers will soon have more flexibility in how they invest in workforce development.

At BMet College, we’re working closely with employers to help them understand what’s changing, what it means in practice, and how to make the most of the new system.

From apprenticeship levy to growth and skills levy

The existing Apprenticeship Levy, paid by employers with a payroll over £3 million, is now known as the Growth & Skills Levy.

While employers will still contribute via payroll, the way funds can be used is becoming more flexible and more closely aligned to priority skills needs.

For employers, this signals a shift away from a one-size-fits-all model towards a system that better reflects the realities of modern workplaces.

There is a stronger focus on early-career training, entry-level roles, and skills that support productivity and economic growth.

However, there are also important changes to be aware of.

Levy funds will need to be used more quickly, with shorter expiry periods, and employers will need to plan their training spend more carefully to avoid losing funds.

This makes having a clear skills strategy — and the right training partner — more important than ever.

Introducing apprenticeship units: A more flexible way to upskill

One of the most significant developments is the introduction of apprenticeship units. These are shorter, modular blocks of training that are drawn from existing apprenticeship standards.

Rather than committing to a full 12–24 month apprenticeship programme, employers will be able to use levy funds to target specific skills gaps through individual units.

This is particularly valuable for employers who need to respond quickly to changes in technology, regulation, or market demand.

Early apprenticeship units are expected to focus on areas such as digital skills, engineering, construction, and emerging technologies, with scope to expand into other sectors over time. For employers, this means:

• Faster access to targeted training

• Greater flexibility in how levy funds are used.

• Opportunities to upskill existing staff without long-term programme commitments.

Apprenticeship units do not replace full apprenticeships. Instead, they sit alongside them, giving employers a broader toolkit to develop talent at every stage — from new starters to experienced employees needing specialist skills.

What this means for employers in practice

Taken together, levy reform and apprenticeship units mean employers will need to think differently about workforce development.

There are clear benefits: more choice, more flexibility, and better alignment between training and business needs.

But there is also a need for proactive planning. Employers who understand their current and future skills gaps — and act early — will be best placed to maximise the value of their levy contributions.

For many businesses, this is also an opportunity to strengthen early-career pathways.

Apprenticeships remain one of the most effective ways to attract new talent, improve retention, and build a skilled workforce that grows with the organisation.

How BMet college supports employers

At BMet College, we work with employers of all sizes across Birmingham and the wider region to design training that delivers real impact.

Our employer partnerships go beyond delivering qualifications. We help businesses:

• Understand how levy reform affects their organisation.

• Identify skills gaps and workforce priorities.

• Choose between full apprenticeships and modular training options.

• Navigate funding rules and maximise levy spend.

• Develop sustainable talent pipelines for the future.

With expertise across construction, engineering, digital, health, business, and professional services, BMet is well placed to support employers as the apprenticeship system evolves.

Now is the time to act

Levy reform and apprenticeship units are not just policy changes — they are an invitation for employers to take a fresh look at how they invest in skills.

Whether you are a large levy-paying employer looking to use funds more effectively, or a growing business exploring apprenticeships for the first time, early engagement is key.

Call to action

If you want to understand how levy reform and apprenticeship units could benefit your organisation, speak to BMet College today.

Our employer engagement team can help you plan your training strategy, make the most of available funding, and build a workforce ready for the future.

Contact BMet College today to start the conversation and shape the skills your business needs to grow.

Employer Engagement Team: 0121 827 7093

Email: [email protected]  

Website: www.bmet.ac.uk