Apprenticeship Insights | 📊 Apprenticeship Budget Hits £3B – Here’s What It Means for Providers

A Shift in Apprenticeship Assessment

Accelerate People’s CEO, Samantha Sawyer, shares a timely perspective on the upcoming 2025–26 Apprenticeship Funding Rules and what they signal for the future of assessment and delivery.

With significant changes ahead, including a redefined approach to apprenticeship assessment, her post offers thoughtful insight and invites sector-wide discussion.

👉 Read the full post here!

APPRENTICESHIP FUNDING

DfE Apprenticeships Budget Surpasses £3 Billion With Record Funding Increase

England’s apprenticeships budget has surpassed £3 billion for the first time, marking a significant 13 per cent increase from last year’s allocation. This boost, confirmed by the Department for Education, represents the largest cash rise since the 2017 introduction of the apprenticeship levy. The move coincides with ongoing government reviews, such as the proposed axing of level 7 apprenticeships, and signifies a substantial reduction in the Treasury’s top slice—the portion retained after employer contributions, which is now estimated at £600 million for 2025-26.

Sector experts, including the Association of Employment and Learning Providers, view the increased budget as a positive response to sector growth and persistent calls for more direct investment. While questions remain about the necessity of restricting high-level apprenticeships if funding is growing, the substantial budget release positions the sector for renewed progress and drives anticipation for further reforms under the coming growth and skills levy.

APPRENTICESHIP REFORM

Key Changes to Apprenticeship Assessment and Funding Rules for EpAOs

Revised apprenticeship funding rules introduce significant changes for End-point Assessment Organisations (EpAOs), demanding shifts in terminology, documentation, and, critically, assessment delivery. EpAOs must now embrace a Centre-based assessment model, prepare for dual terminology, and anticipate the likely relegation of behaviours as separately assessed elements. Early and formal engagement between training providers and assessment organisations becomes mandatory, while new measures clarify the minimum durations of accelerated apprenticeships and establish more nuanced gateway requirements for English and maths.

Independence in assessment, although redefined, remains essential, particularly with the growing involvement of providers. The transition to new assessment plans may require EpAOs to operate dual systems temporarily. With further guidance and regulatory consultations on the horizon, EpAOs and providers should prioritise readiness and adaptability to ensure compliance and effective assessment strategy amidst a landscape of ongoing policy evolution.

LEADERSHIP CHANGES

Charlotte Bosworth Appointed Lifetime Training CEO, Succeeding David Smith

SKILLS DEVELOPMENT

First Seven Foundation Apprenticeships Announced For Young People's Entry Into Workforce

The introduction of foundation apprenticeships marks an important evolution in early career pathways, offering young people structured employment-based learning opportunities. Seven new foundation apprenticeships have been published by the Institute for Apprenticeships and Technical Education, each with an eight-month duration and funding bands ranging from £3,000 to £4,500. As formally employed roles, these apprenticeships focus on developing employability skills, technical knowledge, and essential English and maths, while facilitating progression towards higher-level apprenticeships or direct employment.

Key milestones remain, such as legislative approval for durations under twelve months and Ofqual recognition for end-point assessment organisations, targeting an official start from August 2025. Employers are incentivised by up to £2,000 per apprentice for retention and progression, and learners without a GCSE pass in core subjects will continue studying without mandatory exams. Overall, these developments signal greater accessibility and practical relevance in vocational training for young people.

WORKFORCE DEVELOPMENT

Balancing Flexibility and Quality in Foundation Apprenticeship Proposals for Young People

Quality must remain paramount in the drive for flexible apprenticeships. While recent proposals to relax English and maths requirements and shorten durations have garnered employer support, the fundamental purpose—equipping individuals with occupational competence—should not be compromised. Foundation apprenticeships, currently under discussion, risk falling short if they dilute essential skills or do not clearly address industry needs.

Employers are wary of creating roles solely for introductory purposes, stressing that apprenticeships must fill genuine skills shortages. The ambiguity around “foundation” terminology and minimal demand in sectors like manufacturing highlight the challenge. Success requires government collaboration with sector bodies, potentially broadening training beyond apprenticeships alone. Only careful design and partnership will ensure young people gain meaningful pathways, reducing those not in education, employment, or training while meeting business needs.

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