Apprenticeship Funding Rules 2025-2026: Key Changes for Employers and Training Providers

The Department for Education has announced significant changes to the Apprenticeship Funding Rules for the upcoming academic year (August 2025 to July 2026). These updates represent some of the most substantial reforms to the apprenticeship system in recent years, with changes that will affect employers, training providers, and apprentices across the UK. 

Shorter Apprenticeships, Greater Flexibility 

Perhaps the most notable change is the reduction in the minimum duration for apprenticeships from 12 months to just 8 months. This represents a fundamental shift in how apprenticeships can be structured and delivered, offering greater flexibility for both employers and learners. 

This shorter timeframe opens apprenticeships to industries with naturally shorter training cycles and creates opportunities for more agile workforce development. However, it's worth noting that this change requires legislative updates, which are expected to be in place by August 2025. 

Revolutionary Approach to Off-the-Job Training 

The new rules completely transform how off-the-job training is calculated and delivered: 

• Each apprenticeship standard will now have a published minimum volume of off-the-job training hours. 

• Training hours are no longer linked to the apprentice's planned duration on programme. 

• Training providers can deliver the required hours over any timeframe (subject to the 8-month minimum duration). 

• Part-time apprentices no longer face automatic extensions to their programmes. 

This approach gives training providers unprecedented flexibility in how they structure learning, potentially allowing for more intensive periods of training when appropriate, rather than forcing an even distribution across the entire apprenticeship. 

Assessment Reforms: Goodbye "End-point Assessment" 

Following reforms announced in February 2025, we're seeing significant changes to assessment approaches: 

• "End-point assessment" becomes simply "apprenticeship assessment." 

• "EPAO" becomes "assessment organisation." 

• "Gateway" becomes "gateway to completion." 

Most importantly, assessments can now take place at any stage of the apprenticeship rather than being restricted to the end of the programme. This modular approach to assessment allows for more natural evaluation of skills as they're developed. 

New Foundation Apprenticeships 

A completely new section of the funding rules introduces foundation apprenticeships, primarily aimed at 16-21 year olds (with some exceptions for 22-24 year olds). These foundation programmes include: 

• Modified English and maths requirements for 16-18 apprentices. 

• New employer incentive payments. 

• A £666 progression payment if the apprentice moves to another apprenticeship within 6 months of completion. 

This creates a more structured entry pathway into the apprenticeship system for younger learners. 

English and Maths Requirements Evolve 

The approach to English and maths within apprenticeships has been refined: 

• Providers must ensure "active learning" takes place according to training plans. 

• There's a clearer process for apprentices aged 19+ to opt-in to English and maths study. 

• Foundation apprenticeships specify 55 minimum guided learning hours per subject for 16-18 year olds. 

  
  

What These Changes Mean for Different Stakeholders 

For Employers 

• More flexibility in how quickly apprenticeships can be completed. 

• Potential reduction in time investment required for each apprentice. 

• New incentives for taking on younger apprentices through foundation programmes. 

• Greater ability to tailor programmes to business needs. 

  
  

For Training Providers 

• Freedom to design more innovative delivery models. 

• Ability to focus training during periods that work best for employers and apprentices. 

• New requirements around active learning for English and maths. 

• Subcontracting restriction updates to be aware of. 

  
  

For Potential Apprentices 

• More diverse apprenticeship options with varying time commitments. 

• Opportunities through new foundation apprenticeships for younger learners. 

• More natural assessment processes that may reduce end-of-programme pressure. 

  
  

Implementation Timeline and Preparation 

These changes will apply to: 

• All apprenticeships starting on or after 1st August 2025. 

• Existing learners for specific policies (including redundancy provisions and changing to new versions of standards). 

  
  

Preparing for the 2025-2026 Apprenticeship Landscape 

The 2025-2026 funding rules represent a significant shift toward a more flexible, adaptable apprenticeship system. While maintaining quality standards, these changes acknowledge the diverse needs of different industries and learners. 

As with any major policy change, the true impact will only become clear as these rules are implemented in practice. Employers and training providers should begin preparing now for the opportunities and challenges these new approaches will bring. 

Next Steps for Employers and Training Providers 

• Review your current apprenticeship strategies to identify opportunities under the new rules. 

• Consider how the shorter minimum duration could benefit your organisation. 

• Explore the potential of foundation apprenticeships if you work with younger learners. 

• Begin planning for the new approach to off-the-job training calculations. 

Have questions about how these changes might affect your apprenticeship programme?

Contact our team for guidance on making the most of the new funding rules. 

Read the full document here.