20205-26 Apprenticeship funding rules (version 3)

December 12, 2025
Review important updates ahead of policy changes coming into effect in January 2026. This version does not yet include details on apprenticeship units, which are due to go live from April 2026. That information is now expected in the new year.
DfE Apprenticeship Funding Rules 2025/26 update summary document with highlights on OTJT, employer statements, and programme duration
The latest version of the 2025–26 apprenticeship funding rules (Version 3) has now been released, bringing important updates ahead of policy changes coming into effect in January 2026. While providers should review the full document, here’s a concise summary of what’s new and what it means for delivery.

 

Key Highlights:

 

Level 7 Eligibility Changes

From January 2026, eligibility for Level 7 apprenticeships will move to an age-based model. Current apprentices remain unaffected, but all new starts from January will fall under the revised criteria. Providers with strong Level 7 demand should ensure employers are aware of this transition.

 

Rules for Commercial Learners

Further clarity has been provided for scenarios where individuals undertake an apprenticeship without government funding. This is particularly relevant for employers planning to fund Level 7 provision commercially after December 2025, especially where they intend to use the under-25 National Insurance exemption. The update also covers certification processes for commercial English apprenticeship delivery in devolved nations.

 

Off-the-Job Training Updates

Annex C has been refreshed to include minimum OTJT hours for newly approved standards and those recently reviewed. These changes reflect adjustments to standards where sizes have altered, for example due to removal of mandatory qualifications. Looking ahead, minimum OTJT hours are expected to be published on Skills England’s website at an individual standard level.

 

Other Clarifications

Additional updates include:

  • Guidance on initial assessment for adult apprentices following recent maths and English reforms.
  • Reminders on using a Break in Learning where OTJT is missed but maths & English takes place.
  • Clarification on APAR exemptions for specific teaching standards.
  • Changes reflecting Ofsted’s updated inspection outcomes.
  • Extra detail for providers on managing TNP1 and TNP2.

 

What’s Next?

 

This version does not yet include details on apprenticeship units, which are due to go live from April 2026. That information is now expected in the new year.

 

Explore the updated funding rules and how these changes impact your delivery

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