What Business Owners Need to Know
From 01 January 2026, government funding for Level 7 apprenticeships (Master’s level) will be restricted to learners aged 16–21 at the start of their programme.
If you are planning to fund senior team members through a Level 7 programme (such as a Leadership or Senior Accounting apprenticeship) they’ll no longer qualify unless they fall within that age bracket from 01 January 2026.
Learners who’ve already started before this date will continue to receive funding, so if this change could affect your team, it’s worth acting now.
Unsurprisingly, this shift has raised questions – especially from employers who’ve used the apprenticeship levy or government co-investment to upskill senior team in leadership, finance or law. If you had plans to develop your team members’ futures with a Level 7 qualification, this change might force a rethink of your training strategy.
But it’s not all bad news…
For most business owners, there are plenty of opportunities to benefit from apprenticeship funding in 2025-26 and beyond.
Let’s break it down.
Apprenticeship Levels Still Eligible for Funding
The funding restriction only applies to new Level 7 apprenticeships, which means you can still fully or partially fund training for:
| Level | Example |
| Level 2 | Customer service or business administration. |
| Level 3 | A-level equivalent, including assistant accountants or digital marketers. |
| Level 4 and 5 | Associate project managers, team leaders or accounting technicians. |
| Level 6 | Degree-level roles in digital, finance or engineering. |
These qualifications can still be fully funded through the apprenticeship levy (if your business pays it) or 95% co-funded by the government if you don’t. For smaller employers, that means you pay just 5% of the training cost.
New Apprenticeship Rules For 2025/26
The government recently published updated rules for all apprenticeships starting between 01 August 2025 and 31 July 2026. Here are the key changes and how they affect you:
Shorter Durations Allowed
- Apprenticeships can now be completed in as little as 8 months, as long as they include 187 hours of off-the-job training.
Recognition of Prior Learning (RPL)
- If your team member already has relevant experience, training providers must assess and account for this.
Assessment Plan Updates
- If your chosen apprenticeship has a newly updated assessment plan, there may be specific requirements to follow, it is worth speaking to the training provider.
Eligibility Rules Clarified
- Individuals with EU pre-settled status remain eligible.
Redundancy and Programme Changes
- New rules for handling apprentice redundancies and switches to updated standards now apply to all apprentices, regardless of when they started.
Why Apprenticeships are Still a Smart Investment
Even with the changes to Level 7 funding, apprenticeships remain a brilliant option for developing your team.
Here’s why:
- Levels 2–6 are still fully or partially funded for eligible learners.
- If you’re a smaller business that doesn’t pay the apprenticeship levy, you’ll only need to contribute 5% of the training cost.
- There’s a huge range of apprenticeships in areas like customer service, project management, accounting, digital, and finance – perfect for both new hires and existing team members.
- Upskilling doesn’t have to mean disruption – apprenticeships can fit around day-to-day roles with minimal impact.
Now’s the perfect time to revisit your hiring or team development plans for 2026.
What Should You Do Next?
If you employ anyone aged 21 and over who could benefit from a Level 7 programme, consider starting them before the 01 January 2026 deadline.
For other team members, look at Level 3 to Level 6 options. There’s a surprising variety of courses available—from data analysis and HR to accounting and management. Your team could grow in skill, confidence and value to the business—with the government covering most of the cost.
You can browse current apprenticeships on the gov.uk apprenticeship website or speak to local providers about what’s available.