Apprenticeship Updates 2026-2027: What you need to know

New Apprenticeship funding rules are coming into effect for England, bringing several important changes for employers, providers, and learners. From 1st August 2026, businesses recruiting apprentices or investing in workforce development will need to understand how these updates affect funding, levy contributions, and new training opportunities.

Employers and providers must follow the updated rules for apprentices starting between 1st August 2026 and 31st July 2027. These 2026 Apprenticeship updates will change the rules on funding, enrolment, and investments.

Here, we break down the funding rules and guidance for businesses and individuals, including how Fareport can support your training solutions.

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The Growth and Skills Levy is replacing the Apprenticeship Levy.

The Growth & Skills Levy is the new name for the Apprenticeship levy in England. This has been designed to give employers greater flexibility over how levy funds can be used, while making sure Apprenticeship funding continues to support priority skills and economic growth.

Like the Apprenticeship Levy, employers with an annual payroll above £3 million contribute 0.5% of their annual wage bill to the growth & skills levy.

This marks the beginning of a broader skills funding system, giving employers greater flexibility in how levy funds can be used over time, although Apprenticeships remain a central part of the offer.

The Growth and Skills Levy aims to:

Give employers more choice over how they develop their workforce.
Encourage investment in priority skills and sectors.
Improve productivity by making high-quality training more accessible.
Support businesses to respond more quickly to changing skills requirements.

This means levy paying employers will need to plan training more proactively.

Levy funds now expire after 12 months

From August, any monies in a business’s growth & skills levy will expire after 12 months, rather than 24 months. This encourages employers to invest in training more quickly and reduces unused levy balances.

Employers must plan recruitment and training sooner or risk losing unused funds after 12 months. Providers such as Fareport support employers to maximise their funding, so employers will invest in training, rather than leaving unused levy balances to expire.

Employer co investment has changed

Levy paying employers who have used all of the funds in their Growth and Skills Levy account will now contribute 25% towards the cost of additional Apprenticeships, compared with 5% previously. This is one of the biggest financial changes for employers this year.

Anyone who started their Apprenticeship programme on or before 31st July 2026 will have the 5% funding contribution locked in. Small/Medium Enterprises (SME’s) who have no growth & skills levy will still receive 100% full funding for enrolling a young person, or 95% funding with the 5% contributed by the employer when enrolling anyone 25 and over.

£2,000 Apprenticeship Hiring Payment introduced for eligible non levy employers

Non-levy employers who recruit anyone aged 16-24 and enrol them onto an Apprenticeship can receive £2,000 for eligible apprentices. Learners must be enrolled for at least three months to receive the payment.

This incentive is to make recruitment more affordable for employers, while promoting to businesses the benefits of hiring a young person.

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New Apprenticeship units are now available.

Employers can now fund shorter, standalone Apprenticeship units that solely focus on specific knowledge and skills in one area, rather than committing to a full Apprenticeship programme. These new units will give greater flexibility for upskilling existing employees.

Other units are available, which focus on manufacturing and engineering, as well as green technology and construction. Apprenticeship units last between 30 and 140 hours. They can be done over one to 16 weeks.

Fareport are currently offering AI Apprenticeship units, such as:

Funding support reinforced for younger apprentices

Government policy continues to prioritise opportunities for young people entering work, making apprentices aged 16 to 24 an important focus for employers. Funding updates for young people include:

Apprenticeship fully funded for SMEs enrolling under 25s
£2,000 incentive for non-levy businesses hiring eligible 16 to 24 year olds within three months of joining
Foundation Apprenticeships available for young people

What do the changes mean for you?

For businesses

For employers, these changes provide a more supported structure on training funding to benefit the wider business objectives. These changes will allow businesses to create specialist teams through units.

With levy funds expiring in 12 months, this puts the pressure on levy employers to use their funding sooner and upskilling their teams, they will need support from the training provider to help them fully maximise their funding.

Additional incentives are also pushing businesses to hire young people and give them a chance to build skills applicable to business needs.

For learners

Young people now have even more support from the government to help them break into their career. This will help increase employment for young people and improve their specialist skills.

Also, offering the choice of completing a unit rather than a full programme will support training and development in specialist areas, building skills ready for now. The bigger need for employers to use their levy sooner means a greater opportunity to train & gain new skills.

Final Thoughts

These changes are encouraging young people to look at workplace upskilling opportunities through Apprenticeships. As the challenge to tackle young people not in employment, education or training (NEETs) is paramount more than ever, we encourage employers and businesses to consider hiring an individual and allowing them the time to train and grow in your business and becoming a vital part of the organisation.

If you are ready to discuss Apprenticeships for your business, then talk to Fareport today. Complete our quick enquiry form, or call 01329 825 805 and find out how Fareport can support your training solutions. You can also email [email protected] and you can talk to our expert team about the new updates, as well as how you can benefit as an employer.