New and Improved Apprenticeship Funding Rules

03 June 2025

The Apprenticeship Funding Rules for 2025 to 2026 have been revised and improved, allowing them to better support the modern needs of employers.

Effective from 1st August 2025, the Apprenticeships (Miscellaneous Provisions) (England) (Amendment) Regulations 2025 will amend the earlier 2017 regulations. The new legislation will reduce the duration of the apprenticeship training in England and Wales from 12 to 8 months. The reason behind this is to accelerate the training period for occupations with shortages. This will introduce and enable the faster integration of new workers into the labour market. The responsibility will fall on Skills England to designate which apprenticeships to those trainees under 21 years old.

The variation will apply to both standard and alternative apprenticeships. Employers should note, any apprenticeships that started preceding the 1st August 2025 will continue to follow the earlier rules. The government will be limiting the funding for level 7 apprenticeships to only apply to trainees under 21 years old.

The requirements for English and maths level 2 qualifications needed for apprentices will also be amended. Employers will have the choice to decide if apprentices aged 19 have the required English and maths capabilities relevant to their roles, even without standalone qualifications for these subjects.

The distinction between full-time and part-time apprenticeships will also be removed. The effect of this will be that part-time apprentices will no longer have to work extended periods. Employers must arrange training within the set hours worked by part-time apprentices. The 20% rule will also be removed from August. Every apprenticeship will have its own minimum standard. This will remove the need to calculate the hours based on the working time of the apprentice.

If you need any further advice and help, please do not hesitate to call the Quest HR Advice Line on 01455 952 028.

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