Insights into Apprenticeship Funding Rule Changes 2025–2026

The Apprenticeship Funding Rules for August 2025 to July 2026 introduce some of the most significant changes providers have seen in recent years.
From off-the-job training reforms to minimum programme durations and tighter compliance expectations, these updates will directly affect how apprenticeships are planned, delivered and audited.

Why the 2025–2026 Funding Rules Matter for Providers

While funding rules are updated annually, the 2025–2026 changes go beyond minor clarifications. Several long-standing assumptions around off-the-job training, programme length and evidence requirements have been replaced with new expectations that will be closely scrutinised through audit and assurance activity.

For providers, this means greater emphasis on delivery evidence, higher risk of funding recovery if requirements are not met, and a need to review training plans, ILR data and operational processes.

1. Off-the-Job Training: A Fundamental Shift

The funding rules move away from calculating off-the-job training as a percentage of programme hours. Each apprenticeship standard will now have a published minimum number of off-the-job training hours. Providers must deliver at least this minimum unless it is reduced through recognised prior learning.

Off-the-job training is no longer required to be evenly spread across the programme duration. Providers can deliver training flexibly, provided minimum hours are met and delivery is clearly evidenced.

2. Minimum Apprenticeship Duration Reduced to 8 Months

From 1 August 2025, the minimum apprenticeship duration reduces from 12 months to 8 months. Providers must still ensure programmes are realistic, achievable and fully compliant with all learning and assessment requirements.

3. Recognised Prior Learning (RPL)

RPL can reduce off-the-job training requirements, but reductions must be evidence-based and documented. Planned training hours cannot fall below the published minimum for the standard, and learners must still meet the minimum time on programme.

4. English and Maths Requirements

For learners aged 19 and over, English and maths are optional following initial assessment and employer agreement. Where English or maths is funded, providers must evidence active learning, separate from off-the-job training delivery.

5. Funding and ILR Compliance

Providers must ensure employer co-investment is collected and recorded correctly within the required funding year. Learning end dates must reflect the completion of all planned learning, not gateway or EPA start points.

6. Subcontracting and APAR Considerations

The updated rules introduce tighter controls on subcontracting, particularly for providers operating under de minimis arrangements or working with higher-risk organisations. Providers should review contracts, risk assessments and APAR eligibility.

7. Level 7 Apprenticeships Funding Changes

From January 2026, government funding for Level 7 apprenticeships will be limited to specific age and eligibility groups. Learners starting before this date will continue to be funded under existing rules.