The Government has just announced its biggest shake-up of apprenticeships in a decade, backed by £1 billion of new investment. For employers, this is genuinely good news – more financial support, more flexibility, and more ways to bring talented young people into your organisation.
Here at Realise, we want to help you make the most of what's on offer. So, let's walk through what's changing, what it means for you, and how we can support you through it.
Almost one million young people in the UK are currently not in education, employment or training (NEET) – a number that has grown significantly in recent years. The Government wants to change this, and the result is a package of reforms that creates new incentives for employers, new routes into work for young people, and a more flexible apprenticeship system overall.
What's in it for employers?
If you take on a young apprentice aged 16 to 24, you could receive a £2,000 incentive payment as an SME. That's a meaningful contribution towards the cost of bringing someone new into your team and investing in their development.
Or, if you hire someone aged 18 to 24 who has been receiving Universal Credit for a minimum of six months, there's a £3,000 Youth Jobs Grant available. This is designed specifically to make it easier and more affordable to give a young person a real chance in the workplace. Alongside this, the Government is expanding its Jobs Guarantee scheme to create more than 35,000 extra subsidised jobs for those aged 18 to 24, compared with the previous age range of 18 to 21.
This financial support is there to help you do something that's good for your business and good for your community.
From April 2026, Foundation Apprenticeships will expand into new sectors, such as Retail and Hospitality. These are Level 2 programmes designed for young people aged 16 to 21 who are taking their first steps into work, and they're already running successfully in engineering, manufacturing and digital. They're a brilliant way to bring in motivated learners, develop them from the ground up, and build the kind of loyal, skilled workforce that makes a real difference. For employers in early years, health and social care, transport, the trades, and business services, this is well worth keeping an eye on – and we'll be letting you know as soon as further sectors are confirmed.
Alongside full apprenticeships, the Government is introducing Apprenticeship Units from April 2026. These are shorter, more modular training options aligned to priority areas including clean energy, engineering, AI and construction. They give employers more flexibility to upskill staff in targeted ways, without always needing to commit to a full programme.
These sit alongside the wider apprenticeship programmes we already support through our Smart Energy Training colleagues, who offer specialist pathways in gas engineering and low carbon heating.
It's also worth noting that a new Level 2 Administration assistant apprenticeship has been approved, available to learners aged 16 to 24. This follows years of lobbying from employers including the NHS and local authorities – it’s specifically designed to help more young people move from education into employment. The funding band is set at £4,000 and public funding is restricted to those aged 16 to 24 – making it one of the first apprenticeships to carry an age limit of this kind. The Government has confirmed there are currently no plans to apply similar age restrictions to other apprenticeships.
To direct more funding towards opportunities for young people, 16 apprenticeship standards will be defunded later in the year. These include Team leader, Operations manager, and Lead practitioner in Adult Care, among others. We know this may raise questions for some employers, and we're here to help you think through what it means for your organisation and what alternatives are available. While, nothing is changing immediately, but it's worth starting that conversation now.
Although some providers are no longer able to accept new starts on these qualifications, Realise continues to have funding available for a limited time (currently expected until September). However, the government is restricting the number of learners able to start these programmes through provider-specific allocations. If you are considering enrolling any learners on one of these programmes, we strongly encourage you to let us know as soon as possible so we can try to accommodate your requirements within any allocation we receive.
A few funding changes are coming that are worth being aware of, so you can plan ahead rather than be caught off guard.
From August 2026, non-levy employers will receive fully funded apprenticeships for eligible learners under 25. That's a genuinely positive change, making it more accessible for smaller businesses to take on young apprentices without worrying about cost.
At the same time, levy-paying employers should be aware that the 10% government top-up to levy accounts will end, and levy funds will expire after 12 months rather than 24. For employers who use up their levy, the co-investment rate will move to 25% (with the Government covering 75%). None of these changes need to be alarming – they just mean it's worth talking to us sooner rather than later to make sure your apprenticeship plans are in the best shape possible.
The reforms also make things a little easier for the people going through apprenticeships. The minimum duration has also reduced from 12 months to 8 months where appropriate, and assessment approaches are becoming more flexible and proportionate.
These changes are designed to make apprenticeships more achievable and relevant – which is good news for learners and for the employers who invest in them.
Early years is a sector that has always understood the value of growing your own. These reforms make it even more rewarding to do so.
If you run a nursery or early years setting and you're classed as an SME, or non-levy payer, the £2,000 SME incentive applies to you if you take on an apprentice aged 16 to 24. Whether you're bringing in someone brand new to the sector or supporting a member of your existing team to progress, apprenticeships remain one of the most effective ways to develop skilled, committed practitioners who truly understand your setting and the children in your care.
Through Realise, you can access a full career pathway in early years – from the Level 2 Early years practitioner apprenticeship for those just starting out, right through to the Level 3 Early years educator, and Level 5 Early years specialist. There's also a Level 4 Children, young people and families practitioner apprenticeship for those working in broader support roles, and a Level 3 Early years business administrator programme for the operational side of running a setting.
It is worth being aware that the Nursery Manager apprenticeship is among those being defunded later this year as part of the wider reforms and based on the Level 5 Operations departmental manager standard. If this affects your current or planned training, please do get in touch and we can talk through the options available to you.
The reduced minimum duration and more flexible assessment approaches will also make it easier to fit training around the natural rhythms of a busy nursery environment.
If you'd like to explore how these changes affect your workforce plans, our early years team is here to help.
What this means for health and social care employers
Workforce pressures in health and social care are well documented, and apprenticeships have long been one of the most practical solutions available. The new incentives make the case even stronger.
For smaller care providers taking on apprentices aged 16 to 24, the £2,000 employer incentive is available. And from August 2026, non-levy employers will be able to access fully funded apprenticeships for eligible learners under 25 – which will be a significant benefit for the many independent and smaller care organisations operating in this sector.
Through Realise, we support care employers with the Level 2 Adult care worker apprenticeship, which is ideal for new starters developing the core skills they need to support people in their daily lives. For those ready to take the next step, the Level 3 Lead adult care worker is the natural progression. We also offer the Level 3 Senior healthcare support worker apprenticeship with the mental health and adult nursing pathway options, and the Level 5 Leader in adult care for those who have responsibility to ensure the most vulnerable adults receive excellent quality of care and support.
It is worth being aware that the Lead practitioner in Adult Care standard is among those being defunded later this year as part of the wider reforms. If this affects your current or planned training, please do get in touch and we can talk through the options available to you.
The removal of standalone English and maths qualification requirements for adult learners aged 19 and over is particularly welcome in this sector, where many experienced care workers have historically faced unnecessary barriers to completing their apprenticeships.
If you'd like to talk through your workforce development options, our team is ready to help you find the right pathway.
Clean energy is one of the Government's stated priority areas for the reformed apprenticeship system, and that's reflected directly in the new Apprenticeship Units being introduced from April 2026. Confirmed units include solar PV installation and maintenance, electric vehicle charging point installation, and mechanical and electrical fitting and assembly. These shorter, modular options will sit alongside full apprenticeship programmes and give employers in the trades and energy sector more ways to develop the skills they need, at a pace that works for them.
For employers looking to train the next generation of gas engineers, our colleagues at Smart Energy Training’s offer the Level 3 Gas Engineer apprenticeship. This 24-month programme covers everything from core domestic gas safety and boiler systems through to LPG, unvented hot water systems, water regulations, and air source heat pumps. Learners graduate fully Gas Safe registered and holding multiple industry-recognised qualifications. The programme is delivered at centres in Ashbourne, Lutterworth and Nottingham, and is open to anyone aged 16 or over with no prior experience required.
For employers focused on the low carbon transition, Smart Energy Training also delivers the Low Carbon Heating Engineer apprenticeship, preparing engineers to work with the renewable and heat pump technologies that are increasingly central to the UK's energy future.
The £2,000 SME apprenticeship incentive applies in this sector too, making it an excellent time to bring new talent into your business and invest in the qualified workforce that the energy transition is going to demand. If you'd like to find out more, speak to the Smart Energy Training team directly.
Transport is a sector where skilled, reliable people are everything – and apprenticeships are a proven way to develop them. The Government's reforms bring real benefits for transport employers, particularly smaller operators.
The £2,000 SME incentive for taking on apprentices aged 16 to 24 applies here, and the expansion of fully funded apprenticeships for under-25s from August 2026 will open up new possibilities for operators who have previously found the cost of training a barrier.
Realise has longstanding partnerships with major transport operators including Stagecoach, First Bus and Go North West, delivering workplace-based Level 2 apprenticeship programmes that develop the frontline skills transport businesses depend on. Our programmes are designed to work around the operational realities of a transport environment.
The new Apprenticeship Unit for electric vehicle charging point installation and maintenance is also worth noting. As fleets transition to electric, having team members who are qualified to support EV infrastructure is going to become increasingly valuable.
If you're a transport employer thinking about your next cohort or simply want to understand how the funding changes affect you, our team would be happy to have that conversation.
What this means for our Business Skills Solutions employers
For businesses employing people in professional and business roles, these reforms bring a welcome combination of more financial support and a more flexible system that better reflects how modern workplaces develop people.
The £2,000 SME incentive for young apprentices and the £3,000 Youth Jobs Grant for hiring Universal Credit recipients may apply to the recruitment of an apprentice (as long as all criteria is met). These incentives will make it significantly more accessible for growing businesses to invest in structured training.
A newly approved Level 2 Administration assistant apprenticeship is particularly relevant here. Available only to learners aged 16 to 24, it's been specifically designed to help young people take their first step into a business environment and comes with a funding band of £4,000. For organisations that have historically found it difficult to access a suitable entry-level business apprenticeship, this is a very welcome addition.
Through Realise, employers have access to a comprehensive suite of apprenticeship programmes. These include the Level 2 Customer service practitioner, Retailer and Trade supplier apprenticeship, Level 3 Customer service specialist, Level 3 HR support, Level 3 Learning and development practitioner, Level 4 Associate project manager, and the Level 5 People professional and Level 5 Learning and development consultant/business partner.
This breadth means, whether you're onboarding someone new to the world of work or developing an experienced manager, there's a programme that fits.
It’s also worth noting that some standards, including the Level 3 Team leader and Level 5 Operations manager, are among those being defunded later this year. There is no impact on apprentices currently enrolled on these programmes - all learners will continue and complete their apprenticeships as planned. The Government is restricting the number of learners entering these programmes. Funding for these programmes will be fully withdrawn by the end of 2026.
The full detail of some of these reforms is still being confirmed, and we'll be keeping a close eye on guidance as it's released. Our job is to make sure you're never left wondering what something means for your organisation.
Whether you're an existing apprenticeship employer or you've been thinking about taking the plunge, now is a genuinely good time to have that conversation. The financial incentives are real, the system is becoming more flexible, and the talent is out there waiting for the right opportunity.
If you'd like to talk through what these changes mean for your business, our team at Realise would love to hear from you. Get in touch and we’d be happy to talk though how it affects your business.