Apprenticeships continue to play a vital role in building skilled, future-ready workforces across the UK. While they remain firmly protected, recent announcements from the Department for Education signal a series of funding and policy changes that employers should start preparing for.

These updates aren’t about removing support for apprenticeships, but they do change how funding works, how long employers have to use it, and how training may look in the years ahead. Here’s a clear, practical breakdown of what’s changing, what’s staying the same, and how employers can respond with confidence.

Apprenticeships Remain Secure, But Planning Matters More Than Ever

The most important message is reassurance: apprenticeships are still a core and safeguarded part of the funding system. There are no immediate changes to apprenticeship standards, funding bands, or delivery models. Employers can continue to recruit and train apprentices as usual.

However, how levy funds are managed is shifting, and that means planning is becoming essential.

Less Time to Use Your Levy Funds

One of the most significant confirmed changes is the shortened lifespan of levy funds. Employers will now have 12 months, rather than two years, to use their allocated funds before they expire.

For many organisations, this means unused levy balances could be lost more quickly if training plans are delayed. Employers who regularly review their levy accounts and align training with workforce needs will be in a far stronger position than those who take a reactive approach.

More Flexible Programme Lengths

In some cases, apprenticeships no longer need to last a full year. Where appropriate for the role and learner, certain programmes can now be completed in as little as eight months.

This change allows employers to upskill staff more efficiently while still maintaining the quality and structure that apprenticeships are known for.

A More Practical Approach to English and Maths for Adults

For apprentices aged 19 and over, formal English and maths qualifications are no longer a mandatory requirement for completion. Instead, learners can demonstrate these skills through their work.

This removes a common barrier for capable adults, making apprenticeships more accessible while still ensuring workplace competence.

Higher Costs When Levy Funds Run Out

Employers whose levy funds are fully used will now need to contribute more towards training costs. The employer share rises to 25%, while government funding reduces to 75%.

This change reinforces the importance of managing levy funds carefully and understanding when co-investment may apply, especially for growing organisations with multiple training needs.

The End of the Levy Top-Up Is on the Horizon

Currently, levy funds receive a small government boost. However, this additional support is expected to be phased out from the 2026–2027 financial year.

Once this happens, employers will largely rely on the value of their own contributions, making it even more important to ensure levy funds are used strategically and not left idle.

Tighter Focus on Level 7 Apprenticeships

Master’s-level apprenticeships will continue, but future funding for new starters will be more targeted. Priority is expected to be given to younger learners, particularly those at earlier career stages.

Importantly, anyone already enrolled or with approved starts will continue under existing arrangements, providing stability for current learners and employers.

Looking Ahead: Shorter Training Options from 2026

From April 2026, levy funding is expected to support short, modular training options, often referred to as “apprenticeship units.” These are designed to help employers quickly build specific skills without committing to a full apprenticeship.

Early focus areas include:

Artificial Intelligence and emerging technologies
Digital and technical capabilities
Engineering and other growth industries

While this offers exciting flexibility, the details, including eligibility, approved courses, and funding levels, are still being developed. Until then, full apprenticeships remain the only fully approved use of levy funding.

apprenticeship funding changes uk employers

What Employers Should Do Now?

Despite upcoming reforms, apprenticeships remain one of the most reliable and structured ways to develop talent. The key shift is not whether employers should use apprenticeships, but how they plan for them.

Employers should:

Review levy balances regularly
Plan training earlier to avoid fund expiry
Consider future workforce needs, not just immediate gaps
Stay informed as further guidance is released

Change is coming, but with the right preparation and apprenticeship training from High Ridge Training, employers and learners can continue to enjoy long-term value.