Every year, billions of pounds in Apprenticeship Levy funds expire unused. Large employers pay into the levy but often struggle to allocate the full amount before it lapses. Meanwhile, smaller businesses face a very different challenge: they want to invest in their people but lack the training budgets to do so.
It’s a mismatch that costs the UK workforce. Skilled, well-trained teams are the foundation of compliant, high-quality contractor services. Without access to professional development, smaller firms risk falling behind, and the workers who depend on them feel the impact.
The FCSA Levy Network was built to bridge that gap.
What Is the FCSA Levy Network?
The FCSA Levy Network is a matchmaking platform that connects large levy-paying employers with smaller businesses that can put those funds to immediate, practical use.
Here’s how it works:
- Levy-paying employers (organisations with 250+ staff and an annual payroll exceeding £3 million) contribute 0.5% of their payroll into the Apprenticeship Levy. Under current rules, up to 25% of unspent levy funds can be transferred to other businesses.
- Recipient businesses apply through the network to receive transferred funds for workforce training and development. The network is open to any eligible business, not just FCSA members.
- FCSA provides the platform, connecting donors with recipients and facilitating the transfer process.
Since its launch, the FCSA Levy Network has secured £4.3 million in levy funds pledged by donors. That’s money that would otherwise have gone unspent and returned to the Treasury.
Why It Matters for the Sector
The Apprenticeship Levy was designed to boost skills and training across the UK economy. But for many large employers, finding enough qualifying programmes to absorb their full levy pot is a genuine challenge. Transferring surplus funds through the FCSA Levy Network turns an administrative headache into a strategic opportunity.
For Levy Donors
- Strengthen your supply chain. If you work with umbrella companies, accountancy firms, or recruitment agencies, investing in their workforce directly improves the quality of service you receive.
- Demonstrate corporate social responsibility. Levy transfers are a visible, measurable commitment to skills development across your sector.
- Use funds before you lose them. Unspent levy funds expire after 24 months. Transferring to recipients through the network ensures your contributions deliver real value.
For Businesses Seeking Training
- Access training at no cost. Levy transfers cover the full cost of approved apprenticeship programmes, removing the financial barrier to professional development.
- Upskill your team. From compliance and payroll management to leadership and business administration, apprenticeship programmes can address genuine skills gaps.
- Open to all. You don’t need to be an FCSA member to apply. Any eligible business can register on the network to receive levy funds.
For the Wider Contractor Ecosystem
When the businesses that support contractors and freelancers are better trained, the entire supply chain benefits. End clients gain greater confidence in their contractor workforce. Workers receive more professional, compliant services. And the sector as a whole raises its reputation at a time when regulatory scrutiny continues to increase.
How to Get Involved
Whether you’re a large employer looking to make better use of your Apprenticeship Levy or a business ready to invest in your team’s development, getting started is straightforward.
- Levy donors: Register your interest on the platform to connect with recipients who will put your funds to work.
- Businesses seeking funding: Apply through the network to access transferred levy funds for qualifying apprenticeship programmes. Membership of FCSA is not required.
Visit fcsalevynetwork.co.uk to find out more and take the first step.
With £4.3 million already pledged, the network is proving that collaboration between large and small businesses can unlock real value for employers, for workers, and for the future of the contractor services sector.
