Enterprise Oxfordshire reaffirms support for businesses as levy changes begin
Apr 01, 2026
As the UK Government reforms the Apprenticeship Levy, Enterprise Oxfordshire is reaffirming its commitment to helping Oxfordshire businesses understand the changes and unlock new opportunities.
Today (1 April) sees the Government announce major changes to the national skills funding system, replacing the Apprenticeship Levy with a new Growth and Skills Levy.
The new arrangement has been designed to give employers greater flexibility to invest in workforce training and address skills shortages. The reforms will also reduce the time period in which funds must be used, encouraging more active planning and investment in training.
Building on a strong legacy of supporting Oxfordshire businesses to fully understand and utilise Apprenticeship Levy funding, Enterprise Oxfordshire hopes to encourage even more organisations across the county to engage with the new levy and support their growth ambitions.
The change in national policy sees the Growth and Skills Levy build on the existing apprenticeship model while broadening how levy funds can be used. This includes enabling employers to support a wider range of training opportunities aligned to their business needs and growth prospects.
Apprenticeships are set to remain central to the system, but the new approach is expected to allow businesses to pivot and respond more quickly to changing skills demands.
Introduced in 2017, the Apprenticeship Levy required qualifying large employers to contribute 0.5% of their annual payroll – over £3 million – into a levy fund that could only be spent on approved apprenticeships.
In addition, eligible large employers were given the opportunity to ‘pledge’ their unused levy funds to smaller businesses, in turn supporting their plans to increase apprenticeship provision.
The Government’s announcement comes as Enterprise Oxfordshire highlights the significant, long term impact its support for apprenticeships and wider training schemes has had on the local economy.
By building strong relationships with Oxfordshire based large businesses applicable to the former Apprenticeship Levy, alongside developing a pipeline of smaller organisations seeking to create apprenticeship opportunities, Enterprise Oxfordshire ensured that significant funding for apprenticeship provision was retained within the county.
Between the launch of the Apprenticeship Levy and March 2026, Enterprise Oxfordshire has delivered the following outcomes associated with levy spend and pledges:
- £6.6 million in levy funding utilised through Enterprise Oxfordshire activity – investment that would otherwise have been lost to the county and returned to the Treasury.
- 551 apprenticeship and learner starts achieved across Oxfordshire businesses in a wide range of sectors.
- 276 employers supported by Enterprise Oxfordshire to understand and access the levy.
Rob Panting of Enterprise Oxfordshire, said: “From the updates we have received from Government, the new Growth and Skills Levy aims to create a more responsive and employer led approach, supporting national priorities such as productivity, innovation and closing critical skills gaps.
“From an Enterprise Oxfordshire perspective, our role is to continue supporting those businesses that pay the levy, as well as smaller organisations that have benefited from the generosity shown by many larger employers.
“We have a strong track record and deep knowledge of the Oxfordshire skills landscape, with a proven ability to help businesses navigate this environment effectively. With this in mind, we look forward to maintaining a strong dialogue with our business community as the Growth and Skills Levy is introduced across the UK, and we encourage businesses to contact us to discuss how they can benefit.”
Following the release of full details of the new Growth and Skills Levy, Enterprise Oxfordshire will deliver a comprehensive service for the county’s businesses, including:
- Securing and unlocking levy funding, including transfers from levy paying employers
- Supporting SMEs in Oxfordshire to access and invest levy funding effectively
- Designing and setting up apprenticeship programmes aligned to business needs
- Providing end to end support, from initial advice through to delivery
More broadly, Enterprise Oxfordshire will also work closely with employers and training providers to:
- Navigate and understand upcoming apprenticeship and Growth and Skills Levy changes
- Share updates and guidance as new information is released by Government and partner organisations
- Ensure businesses are well positioned to respond to new opportunities associated with the Growth and Skills Levy
Under the new system, UK employers who pay the levy will continue to contribute in the same way; however, they will have greater choice over how funds are used.
Alongside apprenticeships, levy funding can now be allocated to shorter and more flexible training opportunities – known as apprenticeship units – enabling businesses to upskill staff in priority areas such as digital, engineering and green technologies.
This modular approach is expected to help employers address immediate skills gaps without the need to commit to a full apprenticeship programme.
Rob Panting added: “While this represents a significant change, we offer Oxfordshire businesses a joined up service that brings together employer engagement, levy expertise and delivery support in one place.
“With such a strong track record of supporting local businesses, we hope to work with even more organisations in the months ahead and support their ambitions.”
Further guidance on eligible training, funding rules and delivery will continue to be published as the Growth and Skills Levy is rolled out.
The Government advises employers to review their workforce development plans and consider how the new system can support both immediate and future skills needs.
Enterprise Oxfordshire became the trading name of OxLEP in April last year, marking the completion of a two year transition that saw local economic development functions move under arrangements agreed by Oxfordshire County Council.
The Council now acts as Enterprise Oxfordshire’s sole shareholder under a Teckal company arrangement.
For more information, head to the Enterprise Oxfordshire Skills website.