From 1 August 2026, 100% of the training and assessment costs of eligible 16- to 24-year-old apprentices will be government funded.
This means levy-paying employers will not have to pay the 25% co-investment contribution for eligible new apprentice starts aged 16 to 24 once their levy funds have been exhausted.
The funding applies to eligible new starts from 1 August 2026 across the wider Growth and Skills offer, including apprenticeships, foundation apprenticeships and apprenticeship units.
All eligible under 25-year-olds will be fully funded for every employer, large and small.
The government has said the following: ‘We want to ensure that young people from all backgrounds can access the apprenticeship opportunities they need to get ahead. However, for a small number of families receiving benefits, taking up an apprenticeship can result in a reduction in household income, creating a barrier to starting an apprenticeship. To help remove this barrier, we are introducing a targeted bursary for eligible young people. This support will help ensure that financial circumstances do not prevent talented young people from accessing apprenticeship opportunities and developing the skills employers need.’
These changes come off the back of a number of reforms to the apprenticeship system that have began in early 2026. In April the Department for Work and Pensions (DWP) took over from the Department for Education (DfE). In the same month apprenticeship units were introduced and additional separate funding rules were announced.
Throughout 2026 the UK Government have been working on defunding of a number of standards took place in 2026 with providers given caps on future start volumes as a part of the wind-down as part of the phased apprenticeship reform which included assessment reforms.
Existing learners remain on the rules applicable at their start date, except where the final rules state otherwise (redundancy and changing to a new version of a standard).
Additional changes that have been introduced in 2026 include:
- Strengthening of recognition of Prior Learning (RPL).
- Additional ILR reporting requirements
- Employer onboarding through the Apprenticeship Service has changed
If you’d like to discuss how these changes may impact your business, book a free consultation call with one of our apprenticeship experts.
Download a Free Employer Guide to Apprenticeships and the funding changes.
