Apprenticeship Changes – March 2026

On 16 March 2026, government announced a major expansion of the Youth Guarantee, backed by £900m over three years, alongside significant reforms to the Growth and Skills Levy and the wider apprenticeship system. These changes aim to increase opportunities for young people, address skills shortages, and ensure funding is better targeted.

Below is a summary of the changes which relate to apprenticeships. 

Growth and Skills Levy Reform

• Levy refocused to prioritise young apprentices.
• Additional incentives for non‑levy employers hiring 16-24year-olds.
• Introduction of apprenticeship units and a more streamlined system to direct funding to priority skills.

New Apprenticeship Opportunities

• Level 2 Administrative Assistant apprenticeship launching 1 August 2026, targeted at 16-24 year olds.

Apprenticeship Units

First apprenticeship units available from April 2026, covering priority areas including:

• AI Leadership
• Electric vehicle charging point installation and maintenance 
• Electrical fitting and assembly
• Mechanical fitting and assembly
• Permanent modular building assembly
• Solar PV installation and maintenance
• Welding – mechanised

For more information, visit:

Apprenticeship units – Apprenticeship Service Support

Streamlining Apprenticeship Standards

To simplify the system and focus investment:

• From September 2026, funding will be withdrawn from 16 apprenticeship standards.

This includes:

• Chartered Manager (degree) – Level 6
• Operations Manager – Level 5
• Team Leader – Level 3

Funding will also be withdrawn from 13 other apprenticeship standards that do not align with youth pathways or industrial strategy. Existing learners remain fully funded to completion.

For more information, visit:

Streamlining apprenticeships – Apprenticeship Service Support

Employer Incentives

From October 2026, non‑levy employers can receive up to £2,000 for hiring 16-24 year old apprentices as new employees.

• It will apply to starts from October (if employed within the previous 3 months).
• First payment issued after 90 days on programme.

Apprenticeship System Changes (from August 2026)

Expiry Period

• Levy funds will expire after 12 months (previously 24).
• Existing funds retain the 24‑month expiry.

10% Top Up

• From 1 August 2026, the government will stop adding the 10% top‑up to new levy funds.
• Existing topped‑up funds remain unchanged.

Employer Co‑Investment Rate

• Government contribution reduces to 75% once levy funds are exhausted (previously 95%).
• Existing apprentices continue to receive the 95% rate.

For further guidance on the upcoming apprenticeship changes and support maximising the use of apprenticeship funding, please contact info@watertrain.co.uk