The Department for Work and Pensions (DWP) has released the draft Apprenticeship Funding Rules for 2026 – 2027 that employers in England must follow to get funding for their apprenticeships.
The 2026 to 2027 funding rules will apply to apprenticeships starting between 1 August 2026 and 31 July 2027. There are different funding rules for different apprenticeship start dates, so employers must follow the funding rules that apply to each apprentice.
Key changes to the rules for employers include:
- Clarification that the minimum volume of off-the-job training for each standard can be found on the Skills England website (on each standard)
- Clarification that employers must keep their PAYE information in their apprenticeship service account up to date
- A reminder that the individualised learning record (ILR) planned end date must not change once submitted, even if the apprenticeship agreement is extended
- A reminder that off-the-job training (OTJT) active learning does not include English and maths standalone qualifications
- A policy update that the training plan must include a section to allow the employer, provider and learner to sign off that the content of the training plan has been delivered
- A policy update that where an alternative progress review timetable is agreed with the employer this should be in advance and reviews must be no more than 6 months apart
- Clarification that where an apprentice is absent from work for medical reasons, they may continue with their apprenticeship.
There will also be the following changes to employer co-investment:
- The 10% government top up payment is removed which will no longer be added to new funds entering levy accounts from 1 August 2026
- For new starts from 1 August 2026 where a levy payer has insufficient funds in their AS account, the employer co-investment rate will be 25%
- For new starts from 1 August 2026 where an employer does not pay the levy and the apprentice is aged 25 or above (at the start of their apprenticeship training), the employer co-investment rate will be 5%
- For new starts from 1 August 2026, where an employer does not pay the apprenticeship levy, the government will fund all the apprenticeship training and assessment costs (up to the funding band maximum) for those apprentices who are aged between 16 and 24 years old (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August) at the start of their apprenticeship training.
Also, from October 2026, non-levy paying employers will be able to get a hiring grant of £2000 when recruiting new apprentices aged 16 to 24.
Employers are invited to provide feedback on the draft rules by Wednesday 6 May 2026, which will be reviewed and an updated version of the rules will be published in May.
