Apprenticeship Funding Changes

Recent government announcements are set to reshape apprenticeship funding from 2026. 

While some of the changes may appear significant, they are designed to increase youth employment, encourage more targeted training, and ensure funding is used more effectively. 

For employers, this is an important moment to understand what’s changing, what it means in practice, and how to plan ahead. 

 

What are the apprenticeship funding changes? 

The Government has announced a series of updates focused on boosting opportunities for young people and reshaping how apprenticeship funding is allocated. 

Here’s a clear breakdown of what’s changing: 

Topic	Current Rules	Changes from Aug / Oct 2026
Government Contribution (once the levy is used)	95% government / 5% employer	75% government / 25% employer for new apprentices  Existing apprentices remain at 95%  SMEs continue to be fully funded in many cases
Funding for SME employers	16–21-year-olds fully funded	16–24-year-olds fully funded from August 2026
Expiry of Levy Funds	24 months	Reduced to 12 months — increased risk of unused funds expiring
Foundation Apprenticeships	Limited sectors	Expanded into hospitality and retail
10% Levy Top-Up	Automatically added	No longer applied to levy funds
Withdrawn Standards	16 standards funded	Funding withdrawn for 16 standards
New Apprenticeships	N/A	Launch of Level 2 Administrative Assistant (16–24)
Apprenticeship Units	Not available	Introduction of flexible, shorter apprenticeship units focused on priority sectors
Additional Payments	N/A	Up to £2,000 for non-levy employers hiring 16–24-year-olds (from Oct 2026)
Employer Planning Expectations	Standard co-investment model	Stronger focus on planning ahead, managing levy, and aligning training to business needs

  

How do the apprenticeship funding changes affect employers? 

These changes will influence how employers approach training, funding, and workforce development over the coming years. 

In practical terms, employers may need to: 

• Reassess how levy funds are used and avoid expiry  

• Plan more carefully for co-investment on new apprenticeships  

• Consider which programmes deliver the strongest business value  

• Take advantage of new incentives for hiring younger apprentices  

At the same time, there are positive shifts. The introduction of apprenticeship units and expanded pathways gives employers more flexibility to develop specific skills quickly and in a way that aligns with business needs. 

Overall, the direction is clear: apprenticeships are becoming more targeted, more strategic, and more closely linked to workforce priorities. 

 

What should employers do next? 

With multiple changes coming into effect at different times, early planning will be key. 

A structured approach can help employers stay ahead: 

• Review current workforce capability and future skills gaps  

• Map training plans against the new funding rules  

• Identify where funding can be maximised or protected  

• Seek clarity on which programmes remain available and relevant  

Taking action now will help avoid rushed decisions later, particularly as levy rules tighten and funding structures shift. 

 

Training Needs Analysis for support with navigating the apprenticeship funding changes 

To support employers through these changes, we’re offering a no-obligation 1:1 Training Needs Analysis throughout April. 

This is a practical, business-focused session designed to give you clarity — not a generic overview. 

In this session, we will: 

• Assess where you can reallocate your training budget  

• Explore alternative leadership and apprenticeship programmes aligned to your business goals  

• Review your current and future skills needs  

• Identify where funding can be maximised or protected  

• Build a clear, tailored plan for your workforce  

You’ll leave with a clearer understanding of what to do next and how to make these changes work for your organisation. 

If you’d like to explore this in more detail, complete the form below and a member of our team will be in touch.

 

 

FAQs 

What is apprenticeship funding? 

Government funding that helps you train staff at a significantly reduced cost — often covering most or all of the programme. 

At Workpays, we help you access and maximise this funding without the complexity. 

 

Do employers have to pay towards apprenticeships? 

In many cases, very little. 

We structure funding correctly, whether through levy or co-investment, so you get the most value with minimal cost. 

What apprenticeship units are being introduced? 

The first apprenticeship units launching from April 2026 include: 

• AI Leadership  

• Electric Vehicle Charging Point Installation & Maintenance  

• Electrical Fitting & Assembly  

• Mechanical Fitting & Assembly  

• Permanent Modular Building Assembly  

• Solar PV Installation & Maintenance  

• Welding 

Can we use apprenticeships for existing staff? 

Yes, and this is where most employers see the biggest impact. 

We help you upskill your current team in a way that improves performance and retention. 

 

Are apprenticeships only for young people? 

No, they’re designed for employees at all levels. 

We support employers in developing both early talent and experienced staff through tailored programmes. 

 

How do we get started? 

The easiest way is to speak to us. 

We’ll guide you through funding, recommend the right programmes, and make the process simple from day one. 

 

What is a Training Needs Analysis? 

A short, focused session with our team to map your skills gaps, funding options, and training plan. 

It’s the fastest way to turn these changes into a clear, practical strategy for your business.