At the Autumn budget on 26 November 2025, the Chancellor announced a package of additional investment to deliver the next phase of the Growth and Skills Levy.
This investment is a key part of the government’s plan to ensure we have the skills to power economic growth, roll out new flexibilities for business, deliver important reforms, and support young people to progress more quickly into skilled, well-paid jobs.
Key Changes for Apprenticeships and the Growth and Skills Levy
- From August 2026, government will fully fund apprenticeships for non-levy paying employers (mainly SMEs) for eligible people aged 16-24.
From April 2026, as previously announced, government will introduce short training courses, the first wave of which will be known as apprenticeship units, to give businesses the flexibility to develop the skills they need. The first wave of apprenticeship units will be in areas such as artificial intelligence, digital and engineering.
Simplifying the Apprenticeship System
The government is also introducing changes to simplify the apprenticeship system and make it more efficient.
From the 2026/27 academic year, this includes:
- removing the additional 10% uplift to levy accounts
- changing the 24-month expiry period for levy funds to 12 months
- changing the government’s co-investment rate to 75% (from 95%) for levy paying employers once they have exhausted their funds
- working with employers on the next phase of the Growth and Skills Levy reforms, including streamlining the suite of apprenticeship standards
Government will work with business on the detail of these reforms, and to explore any further reforms that may be needed. Detailed plans, informed by employers, training providers, and other stakeholders, and drawing on insight and analysis by Skills England, will follow early in the new year.
Stay up to date
- Further details on the wider Youth Guarantee and Growth and Skills Levy package will be announced shortly.
For the latest apprenticeships changes, visit the Growth and Skills Levy employer page.