Apprenticeship funding rules 2026 to 2027
What changed in the 2026/27 apprenticeship funding rules, what it means for employers and training providers, and where each requirement sits in the guidance.
What the 2026/27 rules are
The apprenticeship funding rules set out what government will and will not pay for, who is eligible, what evidence has to exist, and what happens when it does not. They apply to every apprenticeship starting between 1 August 2026 and 31 July 2027, and they are the document an audit is conducted against.
Three things make this year unusual. Responsibility for apprenticeships moved from the Department for Education to the Department for Work and Pensions in April 2026. The Apprenticeship Levy became the Growth and Skills Levy, which changed how long funds last. And sixteen standards lost funding from September 2026.
An apprentice is funded under the rules in force on the day they start. A start on 31 July sits under last year's rules for its whole duration; a start on 1 August sits under this year's. That single fact causes more confusion than anything else in the document.
What changed this year
Levy funds now expire twelve months after they enter the account, rather than twenty-four. The ten per cent government top-up has gone. Together these mean an employer who used to have two years to plan now has one, and unspent money is lost rather than accumulated.
Co-investment was removed for apprentices aged 16 to 24 at employers who do not pay the levy. Those apprenticeships are now fully funded. For everyone else the co-investment rate is five per cent.
Level 7 apprenticeships are no longer funded for new starters aged 22 and over. Apprenticeship units, which are short modular blocks, and foundation apprenticeships of around eight months became fundable in April 2026.
Who the rules apply to
Employers are responsible for the apprenticeship agreement, the contract of employment, the wage, and giving the apprentice the time to train. Providers are responsible for eligibility checks, the training plan, delivery, evidence and the funding claim.
In practice the provider carries most of the audit risk, because the provider makes the claim. But an employer whose records do not support that claim will find the money clawed back from the provider and the relationship ended, so the interest is shared.
The parts that most often go wrong
Eligibility evidence that was never collected, or collected after the start date. Off-the-job training recorded as a total rather than against the published minimum for that standard. Prior learning not assessed, or assessed but not reflected in the price. Training plans that do not match what was delivered. Subcontracting arrangements that were never declared.
None of these are exotic. They are ordinary administrative gaps that become funding gaps at audit, and they are almost always cheaper to prevent than to argue about afterwards.
Common questions
Which funding rules apply to my apprentice?
The rules in force on the day they started. An apprentice who started in July 2026 stays on the 2025/26 rules for their whole programme, even though the 2026/27 rules are now current.
When were the 2026/27 apprenticeship funding rules published?
The 2026/27 rules apply from 1 August 2026. They are revised in-year, so check the version number on the GOV.UK page rather than relying on a copy downloaded earlier.
Do the rules apply to existing apprentices?
No. Existing apprentices continue under the rules they started on. New rules only affect new starts, which is why start dates matter so much.
What happens if we breach the funding rules?
Funding is recovered for the affected apprentices, usually at audit. Repeated or systemic breaches can affect a provider's contract and Ofsted position.
What has changed recently
Live from the feed. This guide is kept in step with these.
Changed Sixteen apprenticeship standards lose funding 1 September 2026 Changed Growth and Skills Levy replaces the Apprenticeship Levy 1 August 2026Track this yourself
Skills Radar follows every change to the funding rules, the standards register and T-Levels, with what changed, what it changed from, and what follows. Free to read.