Latest apprenticeship updates
Everything you need to know about the latest apprenticeship updates...
The Government has announced a significant package of reforms and investment aimed at strengthening opportunities for young people, supporting employers, and modernising the apprenticeship and skills system. These changes, unveiled in March 2026, form part of a wider strategy to boost productivity, address skills shortages, and create clearer pathways into work for young people.
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Youth Guarantee Expansion
A further £900 million investment over the next three years will expand the Youth Guarantee. This includes:
- Extending the Jobs Guarantee to young people aged 22 to 24
- Introducing new hiring incentives for employers recruiting Universal Credit claimants at risk of long-term unemployment
This expansion aims to ensure more young people can access meaningful employment and training opportunities.
For more information, please read the DWP Press release.
Reforms to the Growth and Skills Levy
The Growth and Skills Levy is being reshaped to prioritise young apprentices and ensure funding is directed where it is needed most. Key changes include:
- Additional incentives for non‑levy employers hiring apprentices aged 16 to 24
- The introduction of apprenticeship units
- A streamlined apprenticeship offer to simplify pathways for learners and employers
These reforms build on the Chancellor's earlier announcements to support the next phase of the levy.
Expansion of Foundation Apprenticeships
From April 2026, foundation apprenticeships will be extended into the hospitality and retail sectors. These industries employ large numbers of young people and offer strong entry routes into sustained employment.
For more information read the GOV.UK Foundation Apprenticeships page.
New Level 2 Administrative Assistant Apprenticeship
A new Level 2 Administrative Assistant apprenticeship will launch from 1 August 2026, aimed specifically at 16 to 24‑year‑olds. This programme will provide an accessible entry point for young people beginning their careers.
More information will be available soon on the Skills England website.
Introduction of Apprenticeship Units (April 2026)
For the first time, employers will be able to use levy funding for shorter, flexible training programmes that are not full apprenticeships. These apprenticeship units are designed to help employers upskill staff quickly in response to emerging skills needs.
To find out more about what units will be released first, please visit the GOV.UK Apprenticeship Units page.
Funding rates for apprenticeship units will be published in April on the Skills England website.
Streamlining Apprenticeship Standards
The government is simplifying the apprenticeship system to create clearer pathways for young people and focus investment on critical skills gaps. Funding will be withdrawn from selected apprenticeship standards from September 2026, although all existing learners will continue to be funded through to completion.
They will also withdraw funding from a further 13 apprenticeship standards that do not sufficiently support young people, align with our industrial strategy, or form a core part of career pathways.
To find out more details about the streamlining of standards and which ones will have funding withdrawn, please visit the GOV.UK Streaming Lining Apprenticeships page.
Changes to the Levy System (from 1 August 2026)
Expiry Period Reduced
Levy funds will now expire after 12 months, instead of 24. This applies only to funds entering employer accounts from 1 August 2026.
Removal of the 10% Top‑Up
Government will no longer add the 10% top‑up to new levy funds from 1 August 2026. Existing funds remain unaffected.
Employer Co‑Investment Changes
For new apprentices starting from August 2026, government support will reduce from 95% to 75% once levy funds are exhausted. Existing apprentices will continue to benefit from the 95% co‑investment rate.
Further Information
Employers and training providers can stay up to date via:
Growth and Skills Levy employer page
