Last updated: August 2026
Apprenticeship funding is changing as the government is moving towards a more flexible, skills-focused system.
For schools, multi‑academy trusts, colleges and education providers, the challenge is not simply what’s changing – it’s ensuring that apprenticeships and training genuinely support workforce capacity, progression and long‑term skills development.
Below is a simple breakdown of the changes and what they mean in practice for our sector.
New levy funds will now expire after 12 months, rather than the previous 24
This changes the pace of learning. Upskilling can no longer be slow, reactive or designed around long lead times. Providers and employers will need to work more closely to design programmes that are:
• Faster to deploy
• More responsive to immediate skills gaps
• Built around continuous or rolling intake rather than fixed cycles
This pushes education to be a model that keeps up with organisational needs.
The change only applies to new levy funds entering employer accounts from August 2026 onwards. Existing funds keep their original 24-month lifespan.
Increased co-investment costs
Once levy funds have been exhausted, co-investment arrangements vary depending on the apprentice’s age. For new apprenticeship starts aged 25 and over, levy-paying employers will typically contribute 25% of training costs rather than the previous 5%. Different funding arrangements apply to eligible apprentices aged 16-24.
That puts training spend under much more scrutiny and means that programmes need to clearly demonstrate:
- Tangible skills development
- Measurable improvements in performance
- A clear return on investment
While this change raises the bar, it also creates an opportunity. Upskilling staff becomes less about simply “using the budget” and more about delivering outcomes that genuinely add value to the school, staff member and pupils.
The 10% government top-up is being removed from August 2026
The removal of the monthly government top-up reduces the overall funding available. This increases the pressure to prioritise quality over quantity. Apprenticeship providers who can clearly evidence impact will stand out, and employers will need to be more selective about which programmes they support and why.
The Difference Between Levy-Paying and Non-Levy Employers
Levy-paying employers face faster fund expiry and the removal of the 10% top-up. However, the financial impact varies depending on the age profile of apprentices, with continued government support available for many apprentices aged 16-24.
For non-levy-paying employers (SMEs), the position is more positive. From August 2026, apprentices aged 16 to 24 will be fully funded by the government, removing the current employer contribution for this age group. From October 2026, these employers will also be eligible for a £2,000 incentive when recruiting apprentices aged 16 to 24.
Employers should review the latest apprenticeship funding rules, as the October 2026 reforms also introduce additional incentive schemes linked to foundation apprenticeships and youth employment
For schools, this could make apprenticeships a more accessible route for developing teaching assistants, school business professionals, pastoral staff and other support roles.
Growth & Skills Levy: What This Means in Practice
As part of the Growth & Skills Levy reforms, the government is also introducing short-course “apprenticeship units” and foundation apprenticeships, with initial units being focused on specific priority skills areas, including AI, engineering, manufacturing, construction and green technologies
These apprenticeship units are short modules extracted from existing apprenticeship standards. They run for 1–16 weeks, require 30–140 tutor-led delivery hours, and are funded on a 30:70 milestone model. They are not full apprenticeships.
At Supporting Education Group, our apprenticeship providers will not be delivering these apprenticeship units. Current funding levels and the requirement for significant face-to-face tutor hours make these units difficult to deliver in a way that meets real employer needs.
How SkillsHub Supports Schools and Trusts through the changes
SkillsHub plays a critical role in helping schools and trusts adjust to these changes – not just as a management tool, but as a way to enable a modern, education-led workforce development.
With SkillsHub, organisations can move beyond generic training by mapping learning directly to skills gaps, aligning education pathways with organisational goals and supporting a more personalised approach to development.
Trust and school leaders can integrate different types of learning in one place, track progress of learners and build cohesive and tailored learning journeys from the options available.
With the expiration date being reduced, SkillsHub also supports speedy deployment of training programmes, better coordination between stakeholders and continuous planning rather than reactive decision-making.
SkillsHub doesn’t just help schools and trusts keep up with change, it helps organisations navigate it with clarity and confidence.