Apprenticeship funding and reforms 25/26
This page provides up-to-date information for apprenticeship training providers on key changes and reforms to apprenticeships for the 2025/26 funding year.
It includes links to official government sources and will be updated regularly as more details become available.
Check back frequently to stay informed.
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Key changes to funding
From August 2025, several changes to apprenticeship funding rules will come into effect, including a reduced minimum duration, simplified training hour requirements, greater subcontracting flexibility, and changes to funding for adult learners and non-levy employers.
- Shorter minimum duration: For new starts from 1 August 2025, the minimum duration will reduce from 12 months to 8 months.
- Simplified off-the-job training: Providers no longer need to calculate off-the-job hours. A set minimum (for apprentices with no prior learning) will be published per standard.
- Functional Skills flexibility: Apprentices aged 19+ are no longer required to achieve English and maths qualifications. Participation is now optional.
- Higher subcontracting threshold: The limit increases from £30,000 to £100,000, allowing providers to work with non-APAR subcontractors for contracts under this value.
- Co-investment changes for SMEs: From 1 April 2025, the 5% employer contribution will no longer apply for non-levy employers hiring apprentices aged 16 to 21. Payments for April and May will be backdated in June.
Changes: explained
Navigate the tabs below to explore the main changes explained in greater detail.
To better align with employer needs and increase flexibility, apprenticeship assessment processes are being updated from April 2025. These reforms include the timing of assessments, provider involvement, and a clarified role for employers in confirming apprentice behaviours.
Read the Assessment Reform Guidance
- Assessments can now take place during the apprenticeship programme, where appropriate.
- Training providers may deliver specific assessment elements, with EPAOs validating outcomes.
- Employers will confirm whether apprentices are demonstrating expected behaviours.
- Updated Assessment Plans will roll out from April 2025 to better reflect sector needs.
Subject to legislative approval, the minimum duration for some apprenticeships will be reduced to 8 months from August 2025. These changes will initially apply to specific standards across sectors including healthcare, construction, creative industries, and education.
Government announcement on Shorter Apprenticeships
- From August 2025 (subject to legislation), some apprenticeships will have a reduced minimum duration of 8 months.
- Applies to the following standards:
- Level 2 Healthcare Support Worker (Health and Social Care)
- Level 2 Dual Fuel Smart Meter Installer (Construction and Built Environment)
- Level 3 Production Assistant – Screen and Audio (Creative and Design)
- Level 6 Postgraduate Teacher (Education and Early Years)
Foundation Apprenticeships are a new route designed for young people aged 16 to 21, offering paid work-based training in key sectors. These programmes are shorter in duration and aim to build early pipelines into technical careers.
Explore Foundation Apprenticeships on IfATE
- Designed to help young people access careers in priority sectors while earning and learning.
- Available to those typically aged 16–21, with exceptions outlined in the DfE funding rules.
- Duration: Typically 8 months (subject to legislation enabling shorter apprenticeships).
- EPAO recognition required before delivery begins.
- Minimum 187 hours off-the-job learning.
- Employer incentive: Up to £2,000 per apprentice, subject to retention and progression.
Available Foundation Apprenticeships:
|
Sector |
Apprenticeship |
Funding |
|
Construction |
Building service engineering, Finishing trades, Onsite trades |
£4,000 each |
|
Digital |
Hardware/network/infrastructure, Software and data |
£4,000 each |
|
Other sectors |
Engineering and manufacturing (£4,500), Health and social care (£3,000) |
- |
The government is refocusing investment towards young people at the start of their working lives, rather than those already in work with higher levels of prior learning and qualifications.
From 1 January 2026, Level 7 apprenticeships will be government-funded for young people aged 16-21, and under 25 for care leavers and those with an EHCP at the start of their apprenticeship in England.
Apprentices who started a level 7 apprenticeship before 1 January 2026 will continue to be funded through to completion.
Stay Updated
This resource page will be updated regularly as further guidance and developments are released. Please bookmark this page and check back often to ensure you're working with the most current information.
For questions or support, please contact NCFE support team or speak to your regional account manager.
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