The government have pledged to make significant reforms to Apprenticeships, in order to give more young people opportunities to learn a trade, promising to create 120,000 new training routes to key sectors such as construction, engineering and healthcare, all before the next general election.
These announcements come as new foundation apprenticeships are set to be launched this August, for those aged 16 to 21, following a government decision to lower the minimum duration of apprenticeships from 12 months to eight.
To fund up to 45,000 of these training places, the government will increase the immigration skills charge by 32%. The increase in this charge will contribute directly to training British workers and make it more expensive to recruit skilled workers from outside the UK.
Whilst these changes propose long-term economic benefits, in the short term, this will impact those sectors they are aiming to support. In 2023, the health and care sector in the UK sponsored over 140,000 applicants. An increase in costs to sponsor overseas healthcare workers into this sector, will have a significant impact in a sector that is already strained.
The government have proposed that funding will shift away from level 7 apprenticeships to focus on lower levels. From January 2026, the apprenticeship levy will only be available to fund level 7 courses for existing apprentices or those aged 16-21. There will be no funding at all for level 7 apprenticeships for over 21s, as the government targets funding training at lower levels.
Currently the system is designed to allow progression through apprenticeships standards, with many starting a level 2 apprenticeship and aspiring to move through the stages. However, these changes will impact this pathway, as apprentices will likely be over 21 before they can reach level 7.
In 2023 to 2024, 24% of funded courses were at Level 6 and 7. By scrapping higher apprenticeship funding will affect a number of sectors with skill shortages, that currently rely on this route to develop their existing workforce or attract talent without the required level of qualification. The decision will ultimately limit the opportunities for anyone over the age of 21 who didn’t go to university. Level 7 solicitor apprenticeships continue to be the only route outside of university to qualify as a solicitor, due to specific qualifications set by the Solicitors Regulation Authority.
Earlier this year, the government removed the mandatory English and maths functional skills requirement for apprentices aged 19 years and over at the start of their apprenticeship training. This change includes apprentices who are currently on programme and is effective from 11th February 2025. Businesses will now be able to decide whether learners will need to complete a level 2 English and maths qualification in order to pass it. This means more learners can now qualify in high-demand sectors such as construction, helping to drive growth. The government predicts up to 10,000 more apprentices will qualify per year, removing barriers to success. It does not mean that apprentices won’t be assessed on core English and maths skills, but it does mean that apprentices will be able to focus more on their paid work.
With new funding structures and shorter apprenticeship programs imminent, businesses should begin preparing to reshape how they attract and train talent. Some actions you can consider are:
• Review workforce needs and identify roles suitable for apprenticeships.
• Plan hiring ahead of the funding change to benefit from full government support.
• Reassess your recruitment criteria and don’t let formal qualifications be a barrier for good candidates.
• Consider interview assessments or basic skills tests to verify practical literacy/numeracy.
• Offer clear development pathways to retain and attract talent.
• Review contracts and policies to reflect shorter apprenticeships or adjusted qualification requirements.
If you are planning to recruit an apprentice, and would like some advice and guidance, or a review of your contracts and policies, please contact Kingswood Group on 01245 204450 for a no obligation call with one of our qualified HR Consultants or email laura.wright@kingswoodgroup.org