Big changes are coming to apprenticeship funding – is your business ready?
From August 2025, key updates to the apprenticeship system will give employers more flexibility, faster training options, and better support to grow skilled teams.
- Foundation Apprenticeships at Level 2
- Some apprenticeships reduced to just 8 months
- Smarter, streamlined assessments
- Easier English & maths requirements for adult learners
- Simplified off-the-job training rules
Seetec has pulled together a no-nonsense guide that explains what’s changing and what it means for you as an employer:
Here’s What You Need to Know
Big changes are coming to how apprenticeships are funded and delivered in England – and if you’re an employer, it’s worth getting ahead of the curve.
From August 1, 2025, new rules are coming into effect.
The government’s updated Apprenticeship Funding Rules for 2025 to 2026 are making apprenticeships more flexible, practical, and aligned with what employers actually need.
Here’s a breakdown of what’s changing and how it could benefit your business.
Read on below – or click the download button for your own copy.
New Entry Route: Foundation Apprenticeships
Say hello to Foundation Apprenticeships – a brand-new, entry-level option aimed at young people that align with Level 2 standards. It’s designed to help them take their first steps into careers in key sectors, all while earning a wage.
What it means for you:
- You can tap into fresh, motivated talent early on.
- It’s a great way to build your own pipeline of future skilled workers.
- You’ll be investing in training without waiting years to see results.
Faster Apprenticeships: Down from 12 Months to eight
Some apprenticeships standards will now take as little as eight months instead of 12 – but only where it makes sense, like when someone has relevant experience or the role doesn’t need a full year of training.
What it means for you:
- Faster turnaround to get apprentices fully skilled and productive.
- Less time and cost involved, especially for experienced new hires who need upskilling.
Simpler, Smarter Assessments
Apprenticeship assessments are getting an overhaul with new national principles. They’ll be:
- More focused on real job skills.
- Easier to tailor to your business needs.
- Less repetitive and time-consuming.
Providers can now help with parts of the assessment too while End-point Assessment Organisations (EPAOs) still handle final sign-off.
What it means for you:
- Less admin hassle.
- More relevant, job-focused outcomes.
- A smoother experience for your apprentice and your team.
Off-The-Job Training Made Easier
No more working out how many hours of off-the-job training (OTJT) each apprentice needs. From now on, there’ll be a set minimum OTJT figure for each apprenticeship standard.
What it means for you:
- Less paperwork and guesswork.
- More consistent expectations from providers.
Easier English and Maths Rules for Adult Apprentices
Big change here: Functional Skills in English and maths has become optional for apprentices aged 19 and over.
What it means for you:
- Greater engagement from learners who might have struggled with test pressure or learning challenges.
- More people able to complete their apprenticeship and apply their new skills to drive real impact in your business.
Level 7 Apprenticeships Under Review
If you offer high-level training (like master’s level), you should know that the government is reviewing Level 7 apprenticeship funding. No changes just yet, but updates are coming so watch this space.
Why It Matters
Apprenticeships have long been a bridge between education and the workplace – but too often, they’ve been weighed down by red tape or one-size-fits-all rules.
These new funding changes feel like a pivot in the right direction: more tailored, more accessible, and more grounded in the realities employers face every day.
It’s not just about helping apprentices succeed – it’s about making sure employers have the right tools to train, support and retain them.
With streamlined rules, shorter timelines, and more flexibility where it counts, the system is moving closer to what modern businesses need.
Whether you’re a small business hoping to grow your own talent, or a larger employer looking to upskill staff quickly and efficiently, these changes open the door to a more practical, employer-friendly approach to apprenticeships.
Looking to recruit an apprentice or want to know more about how the new funding rules affect you contact us at apprenticeships@seetec.co.uk.
