Apprenticeship funding has seen major updates in 2025, with further changes due in 2026. These reforms matter to employers not only because they affect funding rules, but also because they create new opportunities to reduce recruitment costs, improve staff retention, and develop the skills businesses need for the future. Used effectively, apprenticeship funding can drive growth while also addressing unemployment and closing skills gaps in the UK economy.
Shorter Minimum Duration
Apprenticeships can now run for as little as eight months (down from 12). Employers must still meet the minimum 187 hours of off-the-job training, but shorter programmes mean staff can be trained more quickly. This helps businesses adapt faster to market demands while still meeting skills requirements (GOV.UK).
Foundation Apprenticeships
Launched in August 2025, Foundation Apprenticeships provide an entry point into sectors with skills shortages. Employers offering eligible programmes may receive up to £2,000 in incentives, making them more cost-effective while also bringing new talent into the workforce (Apprenticeship Guide).
Assessment Reform
The traditional “end-point assessment” has been replaced with a more flexible model, which can take place at different stages of the programme. This allows training to better reflect business needs and ensures staff gain the skills required to succeed long-term.
Ensure apprenticeships align with new duration and training rules so they deliver measurable improvements to productivity.
Incentives and levy funds can offset training costs while building a sustainable talent pipeline, improving ROI.
Updated funding rules require accurate reporting and documentation. Good processes protect your business and ensure you retain access to funding.
Level 7 Funding Changes
From January 2026, public funding for Level 7 (master’s) apprenticeships will be restricted to learners under 22. Employers will need to use levy funds to support older apprentices, making forward planning essential (FE Week).
High-Risk Employer Policy
The Department for Education has extended the high-risk employer assessment period to five years and included consistent underperformance (DfE update). This highlights the importance of strong outcomes and governance, ensuring funding continues to be available for businesses that demonstrate effective use of apprenticeships.
