APPRENTICESHIP CHANGES 2026: WHAT EMPLOYERS NEED TO KNOW

A number of important changes to apprenticeships have been announced, including how they are funded, which programmes are available, and how employers can use them to develop their workforce.

For employers across the Liverpool City Region, this is a moment to take stock, but it’s important not to dawdle. Some familiar apprenticeship routes that are popular with employers are being withdrawn. Meanwhile, apprenticeship funding rules are tightening, which will affect training budgets and HR development plans. The positive news is that new staff development opportunities are emerging, along with financial incentives and greater flexibility, especially for recruiting younger staff.

Our article will help employers in the region understand what’s changing now, which will help you make confident decisions about recruitment and workforce development going forward.

Defunding of 16 apprenticeships

One of the headline changes is the withdrawal of 16 apprenticeship standards, including popular leadership and management programmes such as the Team Leader, Operations Manager, and Chartered Manager apprenticeships.

From September 2026, employers will not be able to enrol any more staff on these programmes. Until September, the number of places for these programmes will be capped. This means any employers hoping to get staff funded through these apprenticeships before they disappear may struggle to find a training provider with training spaces. 

For employers, this means quickly reviewing any planned training through these apprenticeships and speaking with their apprenticeship provider. Alternatively, they need to explore other training options early, particularly if leadership development is a critical part of your workforce strategy.

Financial incentive to recruit younger apprentices

The changes to apprenticeships that are underway show a clear shift towards supporting younger people into work. This is reinforced by the introduction of a £2,000 financial incentive for employers who recruit a young apprentice aged up to 24. At a time when funding pressures are increasing, this payment will help offset some of the costs associated with recruiting and supporting younger apprentices, making apprenticeships a more attractive option for building an early-careers pipeline.

A new Level 2 Administration Assistant apprenticeship is being introduced, and this will be limited to learners aged 16 to 24.

New apprenticeship units: Flexible skills training

Another significant development is the introduction of new apprenticeship “units”. These are designed to give employers more flexibility by allowing them to access shorter, targeted training in specific skill areas, rather than committing to full apprenticeship programmes.

The first units to be introduced focus on priority sectors with clear skills shortages. These include areas such as AI leadership, electric vehicle charging point installation and maintenance, electrical and mechanical fitting and assembly, modular construction, solar PV installation, and mechanised welding.

These have been identified based on employer demand and are closely linked to sectors expected to drive future economic growth, including advanced manufacturing, construction, low-carbon technologies, and digital innovation.

What’s changing with apprenticeship funding?

When it comes to funding, one of the most significant changes is the reduction in the timeframe for spending apprenticeship levy funds. These funds will now need to be used within 12 months rather than 24. This applies to funds entering accounts from 1^stAugust onwards, shortening the planning window and increasing the risk of funds expiring if they are not used in time.

In addition, the government 10% top-up to levy funds is being discontinued, from 1^st August, reducing the overall value of funds available in employer accounts.

For levy-paying employers who have already used their levy allocation, co-investment rates are also changing. The government contribution will decrease from 95% to 75%, meaning employers will need to cover 25% of the cost of training for any apprentices enrolled after the levy funds are spent. This is a significant increase from the previous 5%.

Taken together, these changes mean that apprenticeship funding will require closer management. Employers may need to prioritise training more carefully, focus on roles where apprenticeships will have the greatest impact, and make full use of available funds before they expire.

Change of direction

Overall, these changes signal a shift in how apprenticeships are being used. There is a stronger focus on supporting young people into employment, targeting training towards priority sectors, and introducing more flexible ways to build skills.

For employers in the Liverpool City Region, this presents both challenges and opportunities. While some familiar routes are being removed and costs may increase in certain areas, there are new ways to develop talent, particularly at entry level and in high-growth sectors.

Support available

Support is available locally to help you navigate these changes. Through BeMore and the Employer Brokerage Service, you can access tailored advice, explore alternative training options, and get help building a workforce development plan that works for your business.

Next steps

Now is a good time to review your approach. Very quickly, employers should consider how to make the most of the earmarked apprenticeship funding and programmes whilst they are still available. Beyond that, they need to explore how to:

• replace disappearing training programmes for leadership & management
• boost training budgets if affected by levy funding cuts
• benefit from new training options such as apprenticeship units and the administration assistant apprenticeship
• maximise funding opportunities by exploring new apprenticeship opportunities for 16 to 24-year-olds in the organisation.