The Apprenticeship Levy became the Growth and Skills Levy in April 2026. This new Levy makes funding more flexible for employers, with the ability to use it across apprenticeships, foundation apprenticeships and new apprenticeship units that will support critical skills areas such as digital, advanced AI and engineering. The rules on how the funding will be split across the different training types are yet to be announced.
The government are streamlining their apprenticeship offer to maximise the amount of funding available for younger apprentices. This includes defunding apprenticeships that the government believe should be funded by the individual or employer.
From 1st September 2026, 16 standards will be defunded, with existing providers being given limits for apprenticeship starts in these areas until the defunding. This affects the following standards:
- Chartered Manager
- Cleaning Hygiene Operative
- Coaching Professional
- Custody and Detention Professional
- Facilities Management Supervisor
- Improvement Leader
- Improvement Practitioner
- Lead Practitioner in Adult Care
- Learning and Skills Assessor
- Learning and Skills Mentor
- Operations Manager
- Outdoor Learning Specialist
- Professional Security Operative
- Public Sector Compliance Investigator and Officer
- Security First Line Manager
- Team Leader
Government funding is no longer available for Level 7 apprenticeships for most learners aged 22+.
The following changes arising from the Autumn 2025 Budget will take effect from August 2026:
- Increase in the co-investment requirements for large employers once their Levy funds run out, with employer contributions rising to 25%
- Removal of the 10% government top up for large Levy-paying employers
- Reduction of the Levy expiry window to 12 months (down from 24 months) for funds that enter the account from August 2026 onwards. Funds that enter the account up to 31st July 2026 will expire in 24 months.
It was announced in the Autumn 2025 Budget that the co-investment requirements are being removed for SMEs for all apprentices under the age of 25, meaning those apprenticeships will be fully funded by the government. This will take effect from August 2026.