What the Autumn Budget 2025 Means for Training Providers
The Autumn Budget 2025 introduces several important changes that will influence apprenticeship delivery, employer engagement and future funding models.
1. Fully Funded Apprenticeships for Under-25s in SMEs
From August 2026, apprentices aged 16 to 24 training with non-levy paying employers will be fully funded by the Government.
Implications for providers:
Growth in Level 2–3 apprenticeship delivery
Increased participation from younger learners entering the workforce
Higher levels of SME engagement and onboarding
A need to expand capacity for early-career programmes
2. Introduction of “Apprenticeship Units”
From April 2026, short and standalone Apprenticeship Units will be introduced, beginning with units focused on digital skills, AI, engineering and other priority skill areas.
Implications for providers:
Proposed that Training Providers not on APAR will need to join a register ( potentially a modified APAR) to be able to deliver the standalone units
Opportunities to deliver modular and flexible programmes
Stronger alignment with employer needs for targeted upskilling
Expansion beyond full apprenticeship delivery
A broader range of training pathways for different learner groups
3. Levy Funding Reforms for Large Employers
Key changes confirmed in the Budget include:
Removal of the 10 percent automatic top up
Expiry of levy funds reduced from 24 months to 12 months
Increase in employer co-investment to 25 percent once levy funds are used
Implications for providers:
Large employers may reassess their training plans due to reduced funding availability
A greater expectation of clear value, compliance and measurable outcomes
Rising interest in shorter and modular training rather than full programmes
Increased scrutiny when approving new provision
4. Strategic Priorities for Training Providers
Develop modular and flexible training models
Shorter and more adaptable programmes will become increasingly important as providers prepare for future delivery expectations. Skills Office Network supports organisations in reviewing delivery structures, strengthening programme rationale and ensuring that models meet the quality and compliance requirements needed for a strong APAR application.
Prepare for increased SME demand
With fully funded under-25 apprenticeships for non-levy employers, providers will need clearer SME pathways and compliant onboarding processes. We offer funding guidance and employer engagement support to help providers manage this growth.
Strengthen propositions for levy employers
Budget changes will make levy employers more selective, increasing the importance of demonstrating compliance and measurable impact. Our audit preparation and quality review services help providers evidence strong delivery.
Improve ILR accuracy and funding compliance
Accurate ILR data and correct funding claims remain central to reliable delivery. Skills Office Network provides ILR management and funding rules advice to minimise errors and reduce risk.
Refresh curriculum content for digital and technical skills
Employer needs are shifting toward digital capability and technical skill development. Our curriculum consultancy helps providers align programmes with current industry and regulatory expectations.
5. Moving Forward
The Autumn Budget signals a shift toward flexible training, modular learning and more targeted investment in skills. Providers who adapt early by strengthening compliance, expanding modular pathways and refining engagement strategies for both SMEs and levy employers will be better positioned for the changes ahead.
Skills Office Network will continue to monitor developments and support providers in navigating funding rules, audit preparation and operational delivery throughout this transition.
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