Leftover L&D budget? Here’s how to fix it.

Top talent doesn’t just want a payslip they want a path forward. Learning & Development (L&D) is no longer a nice‑to‑have; it’s fundamental to attracting, engaging, and retaining great people.

And yet, despite good intentions, huge chunks of L&D budgets never get used.

At Ben, we see the data first-hand. In 2024 alone, nearly £1 million in L&D allowance went unspent among customers. That's a budget that could’ve gone to coaching, courses, certifications, anything to help people grow. And because we can surface this data, our customers can spot unused budget early and put it to work.

But globally, over 20% of L&D budgets remain unmanaged, never reaching the employees who could benefit. And despite the push for learning outcomes, only about 4% of organisations actually measure ROI, with merely 8% measuring learning impact [Forbes]. That means billions in potential value is slipping through the cracks, not due to lack of intent, but because of poor execution

So when you look at your assigned budget for Learning & Development, ask yourself: Is it being fully utilised? Here’s why L&D budgets often go unused, what that costs your business, and what you can do about it.

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The true cost of unused L&D budgets

It’s easy to think “no harm done” if a budget isn’t used. But with L&D, the cost of inaction has real and measurable consequences for both your people and your business.

1. Lost retention

• Employees who don’t see growth opportunities are more likely to leave. 
• Career development is now one of the top drivers of retention and attrition (LinkedIn, 2025)
• A lack of visible growth opportunities signals a lack of long-term investment; employees won't sit still, they’ll move on. 

• Replacing an employee can cost  50-200% of their annual salary once you factor in hiring, onboarding, lost productivity, and cultural impact. 

2. Missed skill development

When your people stop learning, your business stops evolving.

• Skills in AI, strategy, and leadership are evolving fast.
• LinkedIn’s 2025 data shows strategic planning, business development, and leadership are among the most depleted skills due to attrition.
• If you're not continuously developing your internal capabilities, you're forced to buy in skills from outside at a premium and risk cultural misalignment or slower onboarding.

3. Reduced ROI on reward spend

• A benefit with low uptake is wasted spend, and employees notice.
  
• Low utilisation can erode trust in your reward strategy.
  
• Common red flags:
  
  
  1. Poor communication
     
  2. Lack of manager ownership
     
  3. Clunky systems that prioritise compliance over experience
     

Unused budget isn’t just an admin oversight, it’s a sign your growth culture might be stuck in neutral.

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Why L&D budgets go unspent

Budgets are growing, 38% of L&D leaders expect more budget this year ( LinkedIn’s 2025 Workplace Learning Report) but increased funding doesn’t automatically mean increased usage.

Here’s what gets in the way:

• Lack of awareness – Employees don’t know what’s available or forget it exists.
  
  
• Unclear policies – If people aren’t sure what qualifies, they hesitate.
  
  
• Time pressure – Learning gets deprioritised under heavy workloads.
  
  
• Poor user experience – Outdated systems make accessing benefits a chore.
  
  
• One-size-fits-all approach – Limited formats or providers fail to engage everyone.

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Five proven ways to boost L&D utilisation

1. Make it visible.

Most employees don’t intentionally ignore their L+D allowance, they simply don’t know it's there. Or if they do, they don’t know how much they have or where to use it. 

Top Tip: Centralise L&D budgets in one easy to use place.

Show employees: 

• How much they have
• What they’ve spent
• Approved providers they can use

With an employee benefits platform like Ben, there’s no mystery, just clarity and access.

‍2. Clarify the rules. 

Vague guidance is one of the biggest blockers to action. If employees aren’t sure what qualifies, or if they’re worried their request might be rejected, they’re unlikely to bother at all.

Top Tip: Define exactly what’s covered.

• Use a simple comms plan or policy to remove guesswork.
• Share examples: courses, coaching, certifications, professional memberships.
• Explain how to claim and when budgets reset.

Ben can help you build a simple comms plan or custom policy to remove the guesswork. 

‍3. Automate nudges

Even the most motivated employees forget to prioritise learning in the day-to-day whirlwind of work.  That’s why L&D needs both smart automation and human reinforcement to cut through the noise.

Top Tip:

Use automated reminders to nudge employees before budgets expire.

Example prompts: 

• “Your Learning and Development budget expires in 3 months!”
• “New L+D provider added, use your allowance now!”

Automated nudges can unlock hundreds of pounds of value without manual chasing.

4. Empower managers

Managers also play a critical role in bringing L&D to life, but they need visibility and support. Without prompts or access to usage data, they may not realise how much budget is going unused across their teams.

Top Tip:

• Equip managers to discuss L&D in 1:1s, team meetings, and goal-setting conversations.
• Share utilisation data with them so they can encourage uptake.
• Make learning part of the regular rhythm, not a once-a-year check-in.

5. Offer real variety

Everyone learns differently, some preferred structured courses, others prefer short form microlearning. Some crave mentorships or leadership coaching. 

Top Tip:

Use Ben’s ecosystem of providers to offer real choice! Ben integrates with providers like Oliva who offer professional coaching, a great way to help employees develop.

“Too many companies treat L&D budgets as a box-ticking exercise. Real growth happens when employees can use that budget not only on their own development, but on development they can apply immediately within the company. With Oliva, Ben users can put their allowance into 1:1 professional coaching and smart, always-on AI support that sharpens resilience, leadership, and problem-solving skills in ways that show up straight away at work. It’s one of the fastest ways to turn unused budgets into measurable impact.” 

- Sançar Şahin, Cofounder & CCO, Oliva

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Practise what we preach: What’s next for Ben? 

We’re not just enabling smarter benefits - we’re applying this thinking internally too. We’re working on: 

• Using engagement data to spot teams with low uptake
• Sending end-of-year prompts to reduce leftover budget
• We have a new advanced comms module where clients can cut through the noise with personalised, multi-channel messaging powered by AI. Boost engagement, drive take-up, and increase appreciation - automatically, at scale.

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Turn your L&D budget into growth

The money’s already on the table. The question is: are your people able to use it?

If you’re unsure, we can help. Ben’s employee benefits platform brings visibility, automation, and provider choice into one place, so your budget works harder.

Let’s Chat. We’ll show you what unused L&D budget is costing you and how to fix it. 

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