What the April 2026 apprenticeship funding changes mean for employers

Big changes are coming to apprenticeship funding on 1 April 2026, and if you’re an employer, or apprentice, it’s worth knowing what’s about to shift.

 

The government is reshaping how the system works, with the aim of making training more flexible and more focused on skills people need right now. 

Here’s a clear, no-nonsense breakdown of what’s changing and why it matters. 
 

1. The Apprenticeship Levy is getting a makeover 

From April 2026, the Apprenticeship Levy becomes the Growth and Skills Levy. The biggest difference? You’ll be able to spend some of your levy funds on shorter training units, not just full apprenticeships. 

These “apprenticeship units” are small chunks of training (30–140 hours) designed to help people upskill quickly. Employers can use up to half of their levy pot on these shorter courses. 

Think of it as a more flexible, pick and mix approach to training. 
 

2. Levy funds will expire faster 

Right now, levy funds expire after 24 months. From April 2026, they’ll disappear after 12 months instead. 

This means: 

• You’ll need to plan training earlier 

• You’ll have less time to use your funds 

• More money could go unused if you don’t keep an eye on it. 

The government is also removing the 10% top up that employers currently receive. 
 

3.There are some changes to how funding works  

For non-levy payers, the government will continue to cover 95% of the training costs and if the apprentice is under 25, it will be 100% funded.  

However, for levy payers, once their levy has run out, employers will now need to contribute 25% of the training costs (previously this was set at 5%).  

In a nutshell: 

Employer type	Apprentice age	Employer contribution
Non‑levy	16–25	0% (fully funded)
Non‑levy	26+	5%
Levy (funds exhausted)	Any age	25%

 

4. Level 7 apprenticeships are being restricted 

From April 2026, Level 7 apprenticeships won’t be funded for new starters aged 22 or over. 

Anyone already on a Level 7 programme can continue, but new adult starters won’t be eligible for funding. 

This change is part of a wider push to focus funding on younger learners and early-career pathways. 
 

5. Apprenticeship units are being introduced 

These new units are small, self-contained chunks of training that can be funded on their own. 
They’re designed to help people build skills more quickly and give employers more flexibility. 

Each unit must have: 

• A clear training plan 

• Documented hours 

• An assessment at the end. 

They’ll be available from April 2026. 

 

6. A bigger focus on young people 

The government is also investing more in the Youth Guarantee and early-career training. This ties in with the Level 7 changes and the shift toward shorter, more targeted skills programmes. 

 

What employers should do now 

Here are a few practical steps to stay ahead: 

• Check your levy balance and forecast - with funds expiring faster, planning is key 

• Explore apprenticeship units - they could help you use funds more efficiently 

• Review your Level 7 plans - especially if you rely on them for staff development 

• Talk to your training providers - delivery models will change, and you’ll want to be aligned 

• Update your workforce planning - especially if you’re in a sector with tight budgets like education or healthcare. 

 

Ready to start your apprenticeship journey? Our friendly advisers are on hand to walk you through the process and how you can benefit from the changes.  

Visit our Employer Hub to find out more.