Major Government Apprenticeship Updates (2025–2026)

by Michelle Midwinter

1. £725 million Apprenticeship Investment Package

The UK government has announced a £725 million package of reforms to expand apprenticeships and training opportunities, particularly for young people. This includes covering the full training cost for eligible apprentices under 25 at SMEs, removing the 5% co‑investment requirement for small and medium employers and creating new foundation apprenticeships in sectors like retail, social care, construction, engineering and digital. These reforms aim to connect more young people with local job opportunities and support economic growth. GOV.UK

2. Changes to Assessment and Terminology

From October 2025, the government is rolling out reforms to how apprentices are assessed. Key changes include:

  • Replacing “End‑Point Assessment” with “apprenticeship assessment”

  • Allowing assessment to take place at various points throughout the apprenticeship

  • Simplifying assessment plans to be more proportional and relevant
     This is part of a broader move to make apprenticeship structures more flexible and employer‑driven. GOV.UK

3. Functional Skills Requirement Reformed

A major reform in 2025 means that adult apprentices (19+) are no longer required to pass Level 2 English and Maths to complete their apprenticeship. This requirement now rests with employers and apprentices to decide together, removing a barrier that previously prevented many from finishing. The change is estimated to help up to 10,000 more apprentices complete their programmes each year. Qualitrain

4. Minimum Duration Rules Relaxed

The government has also updated funding rules so the minimum apprenticeship duration can be as short as 8 months (instead of 12) where appropriate, helping those with prior learning or experience to progress quicker. Find Employer Schemes

5. Level 7 Apprenticeship Funding Changes

Starting January 2026, public funding for Level 7 (Master’s‑equivalent) apprenticeships will be restricted for those aged 22 and over. This reflects a shift toward investing in early‑career training and skills, though apprentices under 22 will continue to be eligible for funding. Employers will still be able to support older apprentices through other funding routes or employer‑paid training. FE Week

Personal opinion: The age limit is too low. The Level 7 apprenticeship funding changes from January 2026,  which restrict public funding for those aged 22 and over, could negatively impact a wide range of people beyond those who’ve taken breaks due to cost, family, or care commitments. Career changers in their 30s or 40s may lose access to an affordable route into new fields, while mid-career professionals aiming to upskill into strategic or leadership roles will face higher barriers without funded training. It may also disproportionately affect people from underrepresented backgrounds who rely on apprenticeships as an accessible pathway to senior qualifications, as well as part-time workers or those returning to the workforce after redundancy, illness, or parenting. Additionally, smaller businesses and non-profits may struggle to self-fund Level 7 apprenticeships for their staff, limiting progression opportunities in sectors like care, education, and charity work.

I would love to hear your thoughts on the change to Level 7 funding!

6. Foundation and Shorter Training Routes

The government is introducing Foundation Apprenticeships (initially at Level 2) and planning short, modular “Apprenticeship Units” from April 2026. These will allow faster, targeted upskilling in priority sectors like AI, digital, and engineering without committing to a full apprenticeship. ISE

7. Skills England Established

A new executive agency, Skills England, was formed in 2025 to shape and improve skills training, including apprenticeships, in line with employer needs and regional priorities. The agency aims to boost employer engagement, streamline funding and align skills training with economic growth. GOV.UK

📌 What This Means in Practice

These reforms signal a shift toward more accessible, flexible and employer‑led apprenticeships:

  • More funded opportunities for young learners

  • Streamlined assessment and flexible training durations

  • Removal of barriers (like mandatory functional skills pass requirements)

  • A focus on shorter, modular training options

  • Targeted investment in foundation and digital skills

Together, these changes reflect a broader commitment to skills, youth employment and lifelong learning, while prompting organisations and individuals to stay informed and adapt to the evolving landscape.

 

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