The UK Government has announced one of the most significant shifts in apprenticeship policy in over a decade. Changes that will reshape how employers recruit and develop talent. These reforms aim to prioritise young people, address national skills shortages, and adjust apprenticeship funding to assist early‑career pathways. As your apprenticeships partner, Nottingham College is here to help you navigate this transition with confidence.
A £1bn national youth employment drive has been launched to create 200,000 new jobs and apprenticeships over the next three years, alongside the “biggest transformation” of the apprenticeship system in a decade. The measures include new incentives for employers hiring young people, expansions to foundation apprenticeships and reforms to the Growth and Skills Levy.
KEY CHANGES INCLUDE:
- £3,000 Youth Jobs Grant for employers hiring 18–24-year-olds on Universal Credit for six months.
- £2,000 incentive for SMEs hiring apprentices aged 16–24.
- Expansion of foundation apprenticeships in sectors like hospitality and retail.
- Investment of £2.5bn over three years into youth employment and skills.
These changes represent a strong governmental push to correct falling apprenticeship starts among young people, which is down by 40% over the last decade.
WHICH APPRENTICESHIPS ARE BEING DEFUNDED?
A total of 16 apprenticeship standards will lose government funding from no earlier than 1 September 2026, with some restrictions already taking effect. These include several widely used management and professional programmes.
From September 2026, the following programmes will no longer be fundable through the levy or co-investment:
- Team Leader / Supervisor (Level 3)
- Operations or Departmental Manager (Level 5)
- Chartered Manager Degree Apprenticeship (Level 6)
- Coaching Professional (Level 5)
- Improvement Practitioner / Leader (Level 4–6)
- Facilities Management Supervisor (Level 3)
- Learning and Skills Mentor / Assessor (Levels 3–4)
- Security First Line Manager / Professional Security Operative (Levels 2–3)
- Lead Practitioner in Adult Care (Level 4)
- Cleaning Hygiene Operative (Level 2)
- Custody and Detention Professional (Level 3)
- Public Sector Compliance Investigator (Level 3)
- Outdoor Learning Specialist (Level 5)
These standards were removed because they are either being replaced, show low national demand, or no longer align with the government’s industrial strategy focus on younger learners and priority skills.
WHAT THIS MEANS FOR EMPLOYERS LIKE YOU
If you currently train apprentices on the defunded standards:
- New starts may already be restricted depending on your 2024–25 delivery.
- Final deadline for starting new learners is 17 December 2026.
After that, the programmes will require full employer funding, making them commercially unviable for most organisations.
If you are looking to recruit young talent, there are new incentives to recruit an apprentice to your team, as well as and expanded foundation apprenticeships. Funding is increasingly being directed towards early-career recruits, prioritising young people who are just starting on their career ladder.
If you rely on apprenticeships for leadership development, some popular management programmes are being withdrawn, but technical and project‑focused apprenticeships remain fully fundable.
At Nottingham College, we understand that these apprenticeship reforms may feel disruptive, particularly for employers who have relied on management apprenticeships to develop their teams. We’re here to support a smooth transition, whether that involves moving to high‑impact technical and professional apprenticeships, planning final enrolments ahead of funding withdrawals, or exploring alternative development options like leadership training, bespoke programmes, and short accredited courses. We can also help you strengthen early‑talent pipelines by making the most of new incentives aimed at younger learners.
As the funding landscape shifts, our team will guide you through the revised Growth and Skills Levy to ensure your training investment continues to provide impact. We encourage you to speak with us about your upcoming skill needs, identify staff who may need to enrol before deadlines, and explore the pathways that best support your future workforce. To get started, contact our Employer Engagement Team today and let us help you plan your next steps with confidence.
