City & Guilds statement on apprenticeship funding reforms

City & Guilds welcomes the renewed focus on strengthening apprenticeship funding to support more young people into high-quality skills and training opportunities.

23 June 2026

The decision to review apprenticeship funding bands, with a clear emphasis on standards most used by under 25s, is a positive and necessary step. We know that funding levels have not always kept pace with rising delivery costs, which has constrained growth and, in some cases, made delivery more challenging for providers. Ensuring that funding is aligned to the real cost of high-quality provision will be critical to unlocking capacity and supporting sustainable delivery across the system.

We particularly welcome the wider direction of travel to incentivise more apprenticeship starts among young people. A stronger focus on the 16 to 24 age group, alongside measures to reduce financial barriers for employers and improve recruitment incentives, has the potential to drive meaningful change. This is especially important given the long-term decline in participation among young people, and the need to create accessible, high-quality pathways into work.

Getting funding right is fundamental to ensuring apprenticeships remain a strong and credible route for both learners and employers. It underpins quality, supports innovation in delivery, and enables providers to invest in the skills, expertise and resources needed to meet evolving industry needs.

As an organisation with a long-standing commitment to vocational education, City & Guilds is committed to working in partnership with employers, providers and policymakers to ensure these reforms deliver in practice. We believe a well-funded and well-functioning apprenticeship system is central to addressing skills gaps, supporting economic growth, and giving more young people the opportunity to build successful, sustainable careers.

We look forward to contributing to the ongoing development of the funding system, ensuring it supports a high-quality, future-ready apprenticeship offer at the heart of the UK’s skills agenda.