What you need to know about the 2025–26 Apprenticeship Funding Rules

The Department for Education (DfE) has released new rules for apprenticeships starting from 1 August 2025. These rules change how apprenticeships are planned, funded and assessed. If an apprentice starts before that date, the current rules still apply to them.

Here’s a breakdown of what’s changing:

Shorter apprenticeships with more flexibility

From August 2025, apprenticeships can last just 8 months (down from the current 12 months), as long as the training requirements are still met.

Key points:

  • Training providers must check and record any prior learning. If an apprentice already has experience, the course can be shorter and cheaper.

  • Apprenticeships must include at least 187 hours of off-the-job (OTJ) training to qualify for funding.

  • If the apprentice has no prior learning, they must do the full OTJ hours listed for their course.

  • Training can be planned more flexibly, as long as it still meets the 8-month minimum and OTJ hour rule.

This means training can be more tailored to each apprentice’s starting point, but good assessment and clear records are essential.

Part-time and full-time apprentices treated the same

The DfE has removed the separate rules for part-time apprentices. You no longer have to extend a course just because someone works fewer hours. Instead, training must match the apprentice’s working schedule in a realistic way.

New rules for off-the-job training hours

The old rule where OTJ training had to be 20% of working hours is being phased out. Now, each apprenticeship will have its own fixed number of OTJ hours listed in official guidance.

These hours only apply to apprentices without relevant experience. While the new numbers are often close to 20%, they’re now standardised for clarity and fairness.

Foundation apprenticeships for young people

A new type of apprenticeship – called a Foundation Apprenticeship (FA) – is being introduced for young people or those with additional needs.

Who can apply?

  • Young people aged 16–21

  • Some aged 22–24, including:

    • Those with an Education, Health and Care Plan (EHCP)

    • Care leavers

    • People in or recently released from prison

Features:

  • You can do an FA at the same or lower level as a qualification you already have, if it helps you gain new skills.

  • Maths and English are still required, but they don’t need to be passed before the course ends.

  • Incentives: Employers and providers can get up to £2,000 per learner, plus £666 more if the apprentice progresses to a higher-level course.

Clearer list of what’s funded

The government has also made it clearer what apprenticeship funding can cover. This includes:

  • Initial assessments and onboarding

  • Teaching and resources (like books and software)

  • Employer support and mentoring (if needed by the course)

  • Exam fees (including one resit)

  • End-point assessment admin

  • Use of apprenticeship software

  • Subcontractor and lesson planning costs

This helps providers and employers plan their budgets better.

Changes to end-point assessments (EPA)

In 2025, all apprenticeship assessment plans will be rewritten to be clearer and more consistent. New guidance will come out in summer 2025.

Until then, keep following current plans—but be ready to adapt.

Faster apprenticeships for experienced learners

Accelerated apprenticeships are now official. These are shorter courses (by at least three months) for people who already have relevant experience. They still need to meet the 8-month minimum and 187 OTJ hour rule.

More flexibility for prisoner apprenticeships

Apprentices in prison can now complete their final assessments before they’re released – as long as their release date is within two years. This helps them stay on track and continue learning after release.

In summary

The new 2025–26 apprenticeship funding rules make the system:

  • More flexible for different learners

  • Easier to understand and plan

  • More inclusive, especially for young people and those with additional needs

If you’re an employer or training provider, now is the time to prepare. Our team is here to help guide you through the changes.

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Or still want to find out a little more first? Read our FAQ’s or visit our guidance section.

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