British businesses are letting £3.3 billion in government training money sit unused — while employees are left to fund their own upskilling.
Evidence shows UK employers train far fewer staff than many European rivals, and the cost is mounting: workers who self-fund essential skills are far more likely to quit, taking vital knowledge with them.
The transition from the Apprenticeship Levy to a broader Skills Levy was meant to fund mid-career development and AI-ready upskilling, but many business leaders still treat apprenticeships as entry-level “CSR projects” — not strategic tools.
Crispin Read, Founder of The Coders Guild, warns, “Businesses pay into a system designed to fund their own workforce development — and then do nothing with it. Some even ask employees to pay for the very skills their business depends on. It’s unfair, inefficient, and a missed opportunity.”
The rise of AI makes this oversight critical. Tools are already generating over 41% of new code in some contexts, yet UK staff are missing out on fully funded training.
The whitepaper shows that AI-fluent apprentices deliver £18,000 net benefit per person — turning the Skills Levy into a “pre-paid engine” for business growth rather than a cost.
“Failing to tap into this funding deepens inequality and wastes talent,” Read added.
With 45% of global employers now demanding AI literacy, the report urges UK organisations to reclaim unused funding, restructure training strategies, and unlock the full potential of the “Digital Native Dividend.”
It’s a wake-up call: ignore it, and companies risk falling behind in the AI revolution — while employees foot the bill.
