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article  /  25th Jun 2025

Apprenticeship Reforms 2025: What UK Employers Need to Know and Do Now

SECTION GUIDE

The UK Government is rolling out the most apprenticeship reforms in over a decade, with reforms targeting faster, more accessible pathways for young people—and tighter funding for higher-level training.

Aimed at reducing skills gaps in key sectors like construction, healthcare, and engineering, these changes could benefit employers—but only if they act early.

Here’s everything you need to know about what’s changing, what it means for your business, and how to stay compliant and competitive in 2025 and beyond.

Apprenticeship Reforms 2025impact hr ident

What’s Changing in Apprenticeships?

 

  • New ‘Foundation Apprenticeships’ Launch August 2025

    The government will launch shorter, fast-track apprenticeships for 16 to 21-year-olds.

    • Minimum duration cut to 8 months (previously 12)
    • Targets early entry into industries like construction, engineering, and care
    • Designed to improve access to training and reduce youth unemployment

  • Immigration Skills Charge Increasing by 32%

    To help fund 45,000 new places, the Immigration Skills Charge (ISC) will rise for employers recruiting from overseas.

    • Applies to sponsored Skilled Worker and Senior/Specialist Worker visas
    • Increased cost per worker: from £1,000 to £1,480 per year (large businesses) or £364 to £500 (SMEs)
    • Affects sectors heavily reliant on overseas workers—especially health and social care

    This cost increase may pressure businesses to focus more on domestic training pipelines.

     

  • Level 7 Apprenticeship Funding Withdrawn for Over-21s (from Jan 2026)

    From January 2026, apprenticeship levy funds will no longer be available for new Level 7 apprenticeships for anyone aged over 21.

    • Only existing apprentices or new entrants aged 16–21 will be eligible
    • Level 7 = equivalent to Master’s level (e.g. solicitor, clinical associate, senior leader)
    • Sectors relying on this route (legal, NHS, management) will be impacted

  • Functional Skills Requirements Removed for 19+ Apprentices

    From 11 February 2025, apprentices aged 19 and over will no longer need to pass Level 2 English and maths to complete their programme.

    • Applies to new and existing apprentices
    • Still assessed on core skills—but employers can choose the format
    • Expected to increase completions by 10,000 annually, particularly in construction

How These Changes impact Employers

If your business recruits apprentices, relies on international hires, or uses apprenticeships to upskill staff, these changes will affect your strategy.

Sectors most affected include:

  • Construction & Trades – Faster, more accessible apprenticeships
  • Healthcare & Social Care – Higher international hiring costs, reduced training options
  • Legal & Professional Services – Fewer Level 7 pathways for adults
  • SMEs – Greater need to attract and retain talent locally

Your Employer Action Plan

 

Here’s what businesses can do right now to prepare and take advantage of the reforms:

Apprenticeship Readiness Checklist

  • Identify entry-level roles suited to 8-month apprenticeships
  • Adjust recruitment timelines to benefit from pre-Jan 2026 Level 7 funding
  • Update contracts and policies to reflect shorter training timeframes
  • Remove rigid academic requirements from job descriptions
  • Use practical skills-based assessments where relevant
  • Offer structured career pathways to retain junior hires
  • Factor ISC increases into 2025–26 international recruitment budgets

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