What you need to know about the 2025-26 Apprenticeship funding rules

The Department for Education (DfE) has released the 2025-2026 Apprenticeship Funding Rules, setting out important changes that will impact how apprenticeships are delivered, funded, and assessed from 1 August 2025.

16 May 2025

Here’s a summary of the key updates and what they mean for FE colleges, training providers, employers, and apprentices. The new rules will apply to any apprenticeships starting on or after 1 August 2025. Any apprentices that started prior to 1 August 2025, will continue to follow the rules applicable at that time.  


Minimum duration and prior learning: A more flexible model

From 1 August 2025, apprenticeships can now be as short as 8 months, provided they still meet key training requirements. This is a significant change from the current 12-month minimum. 

What’s changed:

  • Prior learning must be assessed and recorded. Where prior experience shortens the programme, providers must show the reduction in both content and cost.
  • The minimum eligibility for apprenticeship funding now stands at 8 months or 187 off-the-job (OTJ) training hours.  
  • If an apprentice has no prior learning, they must receive the full published OTJ training hours for that standard. 
  • Programmes can be delivered flexibly across any timeline (as long as they meet the 8-month minimum), without affecting OTJ hour requirements. 

This change offers greater agility in designing apprenticeships tailored to individuals’ starting points, it also means robust initial assessment and clear documentation are more important than ever.


Simplification of part-time vs full-time OTJ adjustments

DfE has removed the distinction between full-time and part-time apprenticeships when it comes to OTJ training delivery. This means you no longer need to automatically extend durations for part-time apprentices. Instead, providers must ensure the planned training is realistic based on working hours.  

Off-the-job training hours: New standard-by-standard requirements  

The 20% rule is being phased out, marking a shift in policy. From August, each apprenticeship standard will have its own published minimum OTJ training requirement, removing the need to calculate hours based on working time.  

  • These published figures apply only to apprentices with no relevant prior learning.  
  • The latest guidance is available here.

In practice, most of these figures remain close to 20% of normal working hours, but this standardisation brings welcome clarity and consistency.  


Foundation Apprenticeships: A new model for young people

Foundation Apprenticeships (FAs) are a new entry route for young people or those with additional needs. They come with unique rules and funding conditions.  

Who’s eligible?  

  • Young people aged 16-21  
  • Some aged 22-24, including:  
  • Those with an Education, Health and Care Plan (EHCP)  
  • Care leavers  
  • Individuals in or recently released from prison  

Key features:  

  • Apprentices can do a Foundation Apprenticeship at the same or lower level than a qualification they already hold, if it develops new knowledge, skills and behaviours.  
  • Maths and English remain required, but the assessment is not mandatory before completion (though encouraged if appropriate).  
  • Incentive payments: Up to £2,000 in total is available to providers and employers for eligible learners, plus an additional £666 progression payment for those who go on to a higher-level apprenticeship.  

What’s now eligible for funding?

DfE has clarified what training costs are eligible under the levy. These include:  

  • Initial assessment and onboarding  
  • Tutor and delivery costs  
  • Learning materials and software licences  
  • Employer support and mentoring (where required by the standard)  
  • Mandatory qualification-related costs (registration, exams, one resit)  
  • Subcontractor management and lesson planning  
  • End-point assessment administration  
  • Use of apprenticeship software systems  

This transparency supports more accurate costing and budgeting for providers and employers alike.  


End-point assessment (EPA) reforms are coming

Significant changes are also ahead for apprenticeship assessments. In February, government announced a new set of EPA principles, with all existing assessment plans set to be rewritten on a standard-by-standard basis from April 2025.  

What to expect:  

  • New guidance in summer 2025  
  • Revised assessment plans to reflect simpler, clearer, and more consistent EPA expectations  

Until then, providers should continue with existing plans but prepare for further updates in the months ahead.  


Accelerated apprenticeships

An accelerated apprenticeship is now officially recognised. These are programmes shortened by at least three months due to prior learning.  

Remember:  

  • They must still meet the minimum 8-month duration and 187 OTJ hour requirement.

 

Prisoner apprenticeships: Improved flexibility

Prisoner apprentices can now complete their end-point assessments prior to release, provided their release date is within two years.  

This allows for greater continuity in learning and better outcomes upon release.  


In summary

The 2025-26 apprenticeship funding rules represent a shift toward greater flexibility, personalisation, and clarity. They support a more inclusive and responsive apprenticeship system, with key implications for:  

  • Initial assessment and programme planning  
  • OTJ training hour calculations  
  • Eligibility and funding for new Foundation Apprenticeships  
  • Clearer guidelines on what training activity is funded  
  • Impending assessment reforms  

We’ll continue to provide guidance as more detail is released. In the meantime, if you’re a training provider or employer preparing for these changes, our team is here to support you.  


Want tailored support on implementing these changes?

Join our exclusive webinar hosted by our Funding and Policy experts on May 22. This session will provide essential updates on the latest government plans for post-16 skills and to get up to speed with the most recent changes in:  

  • Adult Skills Funding  
  • Apprenticeship Funding  
  • 16-19 Funding  

Don’t miss out on this opportunity to engage, ask questions, and gain valuable insights to inform your future strategies.  

Book your place now