Employer Insights: FAQs
What should procurement and bid-writing teams know about the reforms?
It’s important that anyone writing about Social Value in bids understands the apprenticeship reforms. This ensures that all Social Value commitments are realistic, compliant, and fully deliverable. When drafting Social Value responses, take particular care with commitments relating to:
• Levy gifting or levy transfers - The Government will now cover 100% of the training costs for apprentices aged 16–24 working in SMEs. As a result, the need for levy gifting or transfers has significantly reduced. Avoid committing to transfers unless you are certain they are required and feasible.
• Employing apprentices - If you plan to commit to taking on apprentices, make sure you have considered:
Updated apprentice wage rates — have you costed these correctly?
The apprenticeship standard — check that the standard you’re referencing has not been defunded under the new reforms.
At this stage, if you are committing to recruit apprentices, we recommend adding “reforms to apprenticeship standards” to your bid risk register.
What should I be aware of when recruiting younger learners?
The emphasis is now on recruiting apprentices aged 16–24, but employers should take into account:
• Younger learners find jobs differently to older candidates — often using social media, school/college networks, online youth platforms, VCSEs and referral routes. Make sure your recruitment plan reflects this.
• Hiring 16–18-year-olds - you may employ candidates under 18, ensure you have the right policies and safeguards in place, including:
An Under‑18s policy
Appropriate safeguarding measures
Clear supervision and support processes for them and their manager
What sectors will be most affected by the reforms?
Sectors with Increased Support and Focus:
Digital and Artificial Intelligence: This sector is a primary beneficiary of the reforms. A new Level 4 AI and automation practitioner apprenticeship has been launched to help businesses adopt emerging technology. Additionally, "AI Leadership" is one of the first eight short-form apprenticeship units launching in April 2026. The government has also set a goal to upskill 10 million workers in AI by 2030.
Engineering and Construction: These sectors dominate the initial rollout of the flexible growth and skills levy products. Seven of the first eight apprenticeship units focus on these areas, including welding, solar PV installation, electric vehicle charging, and modular building assembly. They are also part of Skills England's four priority sector skills packages designed to address critical shortages.
Hospitality and Retail: While previously excluded from some entry-level offers, foundation apprenticeships (Level 2, eight-month programmes for young people) will expand into hospitality and retail starting in April 2026.
Early Years and Education: This sector receives targeted support to address a shortfall in graduate-level staff, including £3.2 million in grants to subsidise 400 early years teacher degree apprentices. "Education and Early Years" will also be one of the first three subjects for the new V Level qualifications launching in September 2027.
Sectors Facing Significant Funding Reductions:
Management and Leadership: This is arguably the most negatively affected "sector," as it spans all industries. Funding for 16 popular standards is being withdrawn from September 2026, including Level 3 Team Leader, Level 5 Operations Manager, and Level 6 Chartered Manager. Ministers believe these represent "general learning and development" that employers should fund themselves rather than through the levy.
Professional Services (Law, Finance, Architecture): These sectors are heavily impacted by the removal of funding for Level 7 (Master's level) apprenticeships for those aged 22 and over. Standards such as Solicitor, Accountancy/Tax Professional, and Architect will see most of their current starts become ineligible for public funding.
Public Sector (NHS and Civil Service): These sectors frequently use the high-level management standards and Level 7 apprenticeships that are being defunded or age-restricted. While they gain a new Level 2 administration assistant apprenticeship in August 2026, it is strictly limited to learners under age 25.
Security and Facilities Management: Specific standards in these sectors, including Professional Security Operative (Level 2) and Facilities Management Supervisor (Level 3), are scheduled for defunding in September 2026.
Will the apprenticeship reforms make the system easier to use?
Hopefully, yes! The apprenticeship reforms are specifically designed with the goal of simplifying processes and reducing the bureaucracy that has historically made the system feel complex and burdensome for both employers and providers. Here are some of the ways the system is being simplified:
More Flexible Training Options: The introduction of "apprenticeship units", short courses lasting between 1 and 16 weeks, allows employers to upskill existing staff quickly in critical areas like AI and engineering without committing to a full 12-month programme.
Reduced Learning Barriers: For adult apprentices (aged 19+), it is no longer mandatory to achieve separate English and maths qualifications to pass. Instead, these skills are demonstrated through real work tasks, which simplifies the entry requirements for many learners.
Shorter Minimum Durations: The legal minimum duration for an apprenticeship was reduced from 12 to 8 months in August 2025, allowing for faster achievement of occupational competence where appropriate.
Removing Funding Caps on Flexibility: Ministers confirmed there will be no fixed percentage cap on how much of their levy funds large employers can spend on the new flexible apprenticeship units, removing a previously proposed layer of administrative restriction.
Streamlined Assessments: The process is being rebranded from "end-point assessment" to "apprenticeship assessment". These reforms aim to remove duplication and allow assessments to take place throughout the programme rather than solely at the end.
What do the reforms mean for existing apprentices?
All apprentices already on a programme must continue to be supported through to completion, and public funding will remain available for the entirety of their course.
Even if an apprentice is currently on one of the 16 management or specialised standards being axed (such as the Level 3 Team Leader or Level 6 Chartered Manager), they will continue to be funded until they finish.
What are Skills Bootcamps?
Skills Bootcamps are free, flexible training courses for adults aged 19+ designed to help people gain in‑demand skills and move into work. They form a key part of the government’s plan to tackle skills shortages and reduce reliance on migration in priority sectors.
Government investment is expanding the programme, with £132 million to support 40,000 learners in priority sectors in 2025–26, plus an additional £100 million for construction‑focused bootcamps.
Key Features:
Duration: Up to 16 weeks.
Guaranteed outcome: All completers receive a guaranteed job interview.
Eligibility: No prior subject knowledge needed, just good English and willingness to learn.
Cost: Free for learners, with potential support for travel, books, and childcare.
Bootcamps span a wide range of industries, including:
Digital: Software development, data engineering, marketing
Technical: Construction, engineering
Green tech: EV maintenance, heat pumps
Logistics: HGV driving (new and returning drivers)
Business: Project management, insurance
Health & early years: Care management, child development, with fast-track apprenticeship routes
I rely on management apprenticeships to upskill my staff. What should I do?
You need to act quickly. Use of Levy Funding for 16 popular standards, including the Level 3 Team Leader, Level 5 Operations Manager, and Level 6 Chartered Manager, is being withdrawn.
The Deadline: Funding for these will officially end on September 1, 2026.
Current Caps: To prevent a "recruitment rush," the government has already placed a 75% cap on new starts for providers currently delivering these courses. If a provider hasn't delivered these standards recently, they aren't allowed to start now.
Future Planning: If these programmes are core to your business, you should budget to self-fund them independently after the deadline.
What are these new "Apprenticeship Units" and how can I use them?
One of the most significant shifts is the launch of apprenticeship units in April 2026.
Format: These are short, "bite-sized" training courses lasting between 1 and 16 weeks (30 to 140 delivery hours).
Purpose: They allow employers to use levy funds for rapid upskilling of existing staff aged 19+ in critical areas rather than committing to a full 12-month apprenticeship. This is in an effort to introduce more flexible training options.
Initial Wave: The first eight units focus on industrial strategy priorities, including AI Leadership, Solar PV installation, Electric Vehicle charging point maintenance, and Welding.
Flexibility: While the government previously suggested a 50% cap on using levy funds for such non-apprenticeship training, ministers have confirmed there is currently no fixed limit on how much an employer can spend on these units.
I’m a small business (SME). What financial support is available?
The government is providing several new incentives to help SMEs hire young people:
Full Training Funding: From the 2026/27 academic year, the government will fully fund apprenticeship training for under-25s at non-levy-paying businesses, so you won't have to pay a penny toward the training cost.
Hiring Incentives: You can claim a £2,000 incentive for recruiting a new apprentice aged 16–24 (starting Oct 2026).
Youth Jobs Grant: You may be eligible for a £3,000 grant if you hire an 18–24-year-old who has been on Universal Credit for at least six months. You can often claim this and the apprenticeship incentive at the same time.
We want to understand AI better. What should we do?
You have three main news paths to upskill your team:
Apprenticeship Training: Enrol staff in the new Level 4 AI and Automation Practitioner apprenticeship. It’s an 18-month programme open to all sectors.
Apprenticeship Unit: Enrol staff in the new Developing AI strategy Apprenticeship unit. It is approved for delivery from April 2026 and is for individuals in, or aspiring to, leadership roles responsible for setting direction, governance and oversight for AI use who, with the support of their employer, need upskilling in AI leadership literacy, defining organisational AI priorities and leading organisational change.
Quick Upskilling: Use the AI Skills Boost programme. It offers free, newly benchmarked online courses that take as little as 20 minutes and provide learners with a digital badge
How should I be offering work placements?
As an employer, you can offer several types of work placements and experience programs, ranging from short-term technical placements to six-month paid roles fully funded by the government. The current reforms are designed to provide a "variety of methods" for young people to enter the workforce, particularly those from disadvantaged backgrounds.
If you are a large supplier to the government, you are explicitly encouraged to participate in the Jobs Guarantee Scheme and adopt inclusive recruitment practices to create long-term career pathways.
The Gov is offering a £3,000 grant for every 18-to-24-year-old hired who has been on benefits and seeking work for at least six months.
You could consider offering:
1. T Level Industry Placements
T Levels are two-year technical qualifications for 16-to-19-year-olds that require a mandatory industry placement. It consists of a 315 hour placement (approximately 45 days) offered as a block of time, day release, or a mix of both
New guidance expected by June 2026 will allow for increased flexibility, such as placements conducted across multiple employers, through group projects, or via remote working
2. Youth Guarantee: Jobs Guarantee Scheme
This is a major initiative to tackle youth unemployment by offering guaranteed six-month paid work placements for young people furthest from the labour market
Eligible 18-to-24-year-olds who have been on Universal Credit and seeking work for 18 months. The government covers 100% of employment costs for up to 25 hours a week at the relevant National Minimum Wage, plus additional "wraparound support"
Employers are encouraged to provide support to help these participants transition into permanent roles or apprenticeships