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Upcoming Apprenticeship Funding Rules: What to Expect in May 2025

Upcoming Apprenticeship Funding Rules: What to Expect in May 2025

As we approach May 2025, the apprenticeship landscape is once again preparing for change. The UK Government is set to release the apprenticeship funding rules for the 2025–2026 academic year, with updates expected to take effect from 1 August 2025. These updates will influence how employers, training providers, and apprentices approach funding, training delivery, and compliance.

To help your organisation stay ahead, we have summarised the key changes from the current funding cycle and outlined what to expect from the upcoming guidance.

Recap: Key Changes from 2024–2025

Understanding the current funding rules provides valuable context for the changes that may come next. Here are the most impactful updates introduced in August 2024:

1. Off-the-Job Training Requirements

Apprentices must complete an average of 6 hours per week (for full-time apprentices) as off-the-job training during paid working hours. This ensures time is dedicated to structured learning outside of daily job duties.

2. Flexibility in Functional Skills

Apprentices with learning difficulties or disabilities may now work toward Entry Level 3 Functional Skills qualifications, following a robust assessment by the training provider.

3. Subcontracting Limit Increase

Providers are now permitted to subcontract up to £30,000 per year to organisations that are not listed on the Apprenticeship Provider and Assessment Register (APAR), easing access to specialist expertise.

4. Active Learning Mandate

All apprenticeships must demonstrate active learning at least once every three calendar months during the practical period, regardless of delivery model (including block release or front-loaded training).

Anticipated Changes in May 2025

While the official guidance for 2025–2026 is yet to be published, early indications suggest the following areas may see updates:

Enhanced Support for Learners with Additional Needs

Expect further developments in making apprenticeships more accessible, including extended flexibility around assessments and tailored learning plans.

Digital Delivery and Compliance

With online learning now standard practice, clearer rules are expected around recording and validating digital off-the-job training, particularly for remote-first roles.

Use of AI in Learning & Assessment

We may see guidance related to the ethical and effective integration of AI tools into training plans, learner progress monitoring, and portfolio development.

SME Incentives and Simplified Processes

The new rules may include enhanced funding support or reduced administrative barriers for small and medium-sized employers, to boost apprenticeship uptake across more industries.

What Employers Should Do Now

To stay prepared:

1. Familiarise yourself with the 2024–2025 rules currently in effect (view official guidance).

2. Connect with your training provider to review how upcoming changes may impact your organisation.

3. Monitor updates in May for the new rules applying from August 2025.

Final Thoughts

At a time when upskilling and workforce development are critical, understanding the latest apprenticeship funding rules can help your business make smarter investments in people. We will continue to monitor the updates and share insights as soon as the May 2025 rules are released.

If you would like tailored support for planning or reviewing your apprenticeship programmes, please contact our team—we are here to help.