New for 2026 — School Improvement Programme: a levy-funded Level 6 route for improvement leaders. Find out more
The apprenticeship funding rules change every year, sometimes more than once. This tracker distills the 2025 to 2026 position for schools into a single reference so you can plan cohorts, budgets and paperwork with confidence.
Employers with a pay bill over £3 million pay 0.5% of that bill into a levy account. Funds can only be used for approved apprenticeship training and assessment. Multi-academy trusts and some local authorities meet the threshold, so check who controls your account before you plan cohorts.
Non-levy paying schools contribute 5% of the training cost, with government paying the remaining 95% up to the funding band maximum. Since April 2024, small organisations no longer pay any co-investment for apprentices under the age of 22, so training for younger recruits is fully funded.
Levy-paying employers can transfer up to 50% of their unused levy to other employers. For non-levy schools this is a critical funding route, particularly for higher-cost programmes such as senior leadership. Transfers are agreed through the Apprenticeship Service.
From August 2025, each standard has a published minimum number of off-the-job training hours. The training must still be planned, tracked and evidenced, and it must sit inside paid working time.
Where an apprentice needs Functional Skills in English or maths, this is funded separately and does not count towards off-the-job training. Check the entry requirements of the standard so nobody is caught out.
The DfE publishes updates termly and the ESFA issues detailed guidance separately. We recommend reviewing the position at the start of each term, checking any exemptions that apply to your apprentices, and running a light-touch audit of your OTJT logs at the same time. If anything is unclear, ask your NCE contact rather than guessing. The rules are more flexible than they look, but only if you plan around them.
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