Understanding Apprenticeship Funding

Apprenticeship funding is changing

Changes to apprenticeship funding are creating new questions for employers. We are supporting our employer partners to understand the latest developments and how they apply in practice to workforce planning and training.

There is no one‑size‑fits‑all solution, and the right approach will depend on your levy position, your workforce plans and the skills you need to develop for the future. Our team is here to help you understand the changes, plan ahead and identify the most suitable training options for your organisation.

Current funding opportunities

There are still strong incentives available for employers who are recruiting apprentices now. Full funding is available for apprentices aged 16 to 21.

Employers can access £3,000 incentive payments for eligible new apprentices.

Employer contributions are reduced and, in some cases, not required at all. These opportunities continue to make apprenticeships a cost‑effective way to recruit, develop and retain talent.

What is changing from August 2026

Looking ahead to August 2026, several important funding changes have been announced.

Levy funds will expire after 12 months for new funds entering accounts. The current 10 per cent government top‑up will be removed. Co‑investment will increase to 25 per cent for new apprenticeship starts.

For small and medium‑sized employers, apprentices aged under 25 will be fully funded, removing the need for any co‑investment.
Overall, funding will be increasingly focused on younger learners.

These changes highlight a clear shift in funding priorities towards early career development.

New flexible training options from April 2026

From April 2026, employers will also have access to new training options known as Apprenticeship Units.

These are shorter, targeted programmes lasting between 30 and 140 hours. They are designed to develop specific skills in priority areas such as AI, green technologies, engineering and construction.

For many employers, Apprenticeship Units could provide a practical way to upskill employees without committing to a full apprenticeship programme.