UK employers are failing to capitalise on billions of pounds in workforce development funding, despite accelerating demand for digital and AI skills, according to new research from digital training specialist The Coders Guild.
The whitepaper highlights what it describes as a critical “perception gap” around the Skills Levy (formerly the Apprenticeship Levy), arguing that outdated views of apprenticeships are preventing organisations from using funded programmes strategically.
The findings come as employer investment in training has fallen by 18.5% in real terms since 2011. At the same time, nearly half of UK workers undertaking online training are now paying for it themselves — despite evidence showing employees are significantly more likely to leave employers who do not support their development.
For senior HR professionals, the data presents a dual risk: declining organisational capability and increased attrition.
The urgency is amplified by rapid AI adoption. UK job postings requiring AI literacy nearly tripled between mid-2023 and late 2024, while AI tools are already generating over 40% of new code in some environments. Yet many employers remain hesitant to invest, fearing technological change may outpace current skillsets.
The Coders Guild argues that the transition to a broader Skills Levy has expanded opportunities for mid-career development, with 51% of apprenticeship starts now undertaken by professionals aged 25 and over. However, many organisations still perceive apprenticeships as entry-level or CSR-focused initiatives rather than vehicles for digital transformation.
Crispin Read, Founder of The Coders Guild, said too many employers misunderstand how the levy works. “We’re seeing businesses pay into a system designed to fund their own workforce development, and then let that money go to waste,” he said.
The whitepaper estimates that AI-fluent apprentices can deliver a net benefit of up to £18,000 to a business, positioning funded training as a productivity driver rather than a cost.
For those navigating workforce planning in 2026, the report frames the Skills Levy not as an administrative obligation, but as a strategic lever, particularly as AI literacy becomes a core competency across sectors.
The full whitepaper is available via The Coders Guild website.
Photo by litoon dev on Unsplash
