Guidance

Apprenticeship funding and apprenticeship unit funding for employers who do not pay the apprenticeship levy

Published 29 April 2026

Applies to England

This guidance explains our reservation of funds policy for apprenticeships and apprenticeship units. 

Employers who do not pay the apprenticeship levy need to reserve funds unless they are receiving a transfer of levy funds. This helps us forecast, monitor and manage the availability of funding through the apprenticeship service.

You should read this document alongside:

• the apprenticeship funding rules
• the apprenticeship unit funding rules
• the apprenticeship employer agreement
• guidance on how to use the apprenticeship service

Videos on using the apprenticeship service are also available.

Reservation of funds

Reservations:

• provide certainty that the government will pay for the apprenticeship training and assessment or apprenticeship unit
• manage the availability and affordability of apprenticeship funding for employers who do not pay the levy

Reservations ensure that employers can plan, and that funds will be available to pay for the training from the point the apprenticeship or apprenticeship unit starts.

Once the employer has confirmed the training provider and the learner, they must turn the reservation into an approved record on the apprenticeship service (also known as a commitment).

We will continue to monitor reservations to help us manage the government’s spend on apprenticeships and apprenticeship units. We may pause reservations within the financial year to ensure that the programmes remain affordable.

To note: Where the apprenticeship or apprenticeship unit is being funded via a transfer of levy funds, these do not require a reservation to be made.

How reservations work

Reservations are either:

• an ‘active’ reservation, where the reservation has not yet turned into an approved apprenticeship record and has not yet expired
• a ‘used’ reservation, where an employer has turned the reservation into an approved apprenticeship record

For apprenticeships, employers who do not pay the apprenticeship levy should reserve funding in advance of: 

• recruitment 

• making an offer of an apprenticeship to an existing employee 

Where reserving in advance is not possible, employers must reserve funds within one calendar month of the apprenticeship starting. This means they can backdate a reservation by one calendar month – however, we expect this to only happen in exceptional cases.

For apprenticeship units, employers who do not pay the apprenticeship levy should reserve funding in advance of the apprenticeship unit starting. Funds must be reserved either prior to the apprenticeship unit starting or within the same calendar month in which it starts (i.e. the reservation cannot be backdated to a previous month). 

Employers may give a provider their permission to reserve funds on their behalf through the apprenticeship service. 

Each reservation is linked to an employer and their apprenticeship service account. If a provider reserves the funds on behalf of the employer, the employer can still use this reservation with any provider. The employer can change the provider at any time up to the point of turning the reservation into an approved record on the apprenticeship service.

Once the employer or provider makes a reservation, we guarantee the funds for that apprenticeship or apprenticeship unit. This is subject to: 

• the employer turning the reservation into an approved record on the apprenticeship service 

• all the eligibility criteria detailed in the relevant apprenticeship or apprenticeship unit funding rules being met 

The eligibility criteria is the criteria in place at the time the learner starts on programme (their learning start date). It is not the criteria in place when the reservation is made.

We will monitor the number of reservations employers make. We may amend this policy if needed - for example, by: 

• reducing the number of active reservations an employer may make 

• restricting the ability to reserve funds for a given month 

We’ll communicate any changes to the policy to employers and providers in advance of the changes.

How to make a reservation

Employers can reserve funds once they have:

• set up their apprenticeship service account
• accepted the employer agreement

When making a reservation, employers will need to know the:

• month the apprenticeship or apprenticeship unit training will start
• apprenticeship standard or apprenticeship unit

Reservations will expire 2 months after the reservation start month if:

• employers do not complete the apprenticeship or apprenticeship unit details in the service
• employers and providers do not fully approve the apprenticeship or apprenticeship unit details in the service

In May 2026, an employer reserves funds for a start in July 2026. If the employer and provider do not complete and approve the apprenticeship or apprenticeship unit details by 30 September 2026, the reservation will expire.

Note: the following example is for apprenticeships only

In May 2026, an employer reserves funds for an apprenticeship start that occurred in April 2026. If the employer and provider do not complete and approve the apprenticeship details by 30 June 2026, the reservation will expire.

Where an apprenticeship has started or restarted before a reservation is made, employers can backdate a reservation by a maximum of one calendar month. If the apprenticeship started or restarted before this, employers and providers must: 

• restart the apprentice on their apprenticeship within the earliest reservation start month available 

• determine their eligibility in line with the start date confirmed in the reservation 

• update the apprenticeship agreement and training plan

Employers can convert a reservation into a full or approved record on the apprenticeship service by adding the learner’s details. Both the employer and the provider need to agree these details. 

Providers will still need to complete individualised learner records (ILRs).

Expired and deleted reservations

Employers can delete reservations they no longer need using the apprenticeship service.

Employers cannot turn expired and deleted reservations into approved apprenticeship records. If needed, a new reservation must be made.

We do not class expired and deleted reservations as active reservations.