Important Apprenticeship Funding Changes You Need to Know for 2025–26

The Department for Education has confirmed a number of key updates to apprenticeship funding rules for the 2025–26 academic year. At Quest Training, we are committed to keeping our Apprentices, Learners and Employers fully informed and supported through every change.

Most of the new rules came into effect from 1 August 2025, as part of the 2025-26 contract, so now is the time to start preparing- understanding what is  changing, and what is staying the same for both new and continuing Apprentices/learners.

Apprentices who are currently on a programme, their contract and scheme of work will stay the same. Any relaxations will be confirmed by their tutors. 

Here’s a round-up of the changes for new Apprenticeships (commencing 1st August 2025) and what they mean.

Apprenticeship Durations & Off-the-Job (OTJ) Training ⌛ 

• New Apprenticeships can now be completed in a shorter period of time, if there is previous learning recorded. 

  
  

• New Apprenticeships Off-the-Job training hours can be less, regardless of Recognition of Prior Learning (RPL).

  
  

• For new Apprenticeships, the old 20% rule for OTJ training has been replaced with standard-specific hour requirements published by the DfE. 

What are the implications?

• New Apprentices who finish early might miss out on some incentives, like the 16–18 employer incentive, or care leaver support, which kick in at 300 or 365 days of being on their programme.

  
  

• RPL can reduce OTJ hours and funding, but minimum thresholds must still be met.

Good News for Part Time Apprentices 🙌

Great news – Apprentices working under 30 hours a week no longer need extended programme durations. This allows part-time Apprentices to move forward alongside full-time Apprentices, making the system more inclusive and balanced.

Functional Skills Now More Flexible for 19+ Apprentices 💪

• Apprentices aged 19+ can now choose to opt in or out of Functional Skills when they enrol.

  
  

• The final decision rests with the employer. If Apprentices opt in, they must complete the learning and sit the tests.

While the 2025–26 updates bring welcome flexibility and clearer rules, they also mean some extra coordination behind the scenes. At Quest, we are on it- updating our systems now so our Apprentices/learners stay fully supported.

You can learn more about these changes on the government’s official site.