New levy, new rules, new opportunities
New levy, new rules, new opportunities
National Apprenticeship Week (9-13 February) has highlighted the impact of work-based learning, Buckinghamshire New University (BNU) is urging employers to prepare for the biggest apprenticeship reforms since 2017.
With sweeping changes taking effect across 2026, BNU is calling on employers to review their apprenticeship strategies now to protect funding and future-proof their workforce.
From 2026, the UK apprenticeship landscape will undergo substantial change. The Apprenticeship Levy will be replaced by the new Growth & Skills Levy, introducing greater flexibility, modular learning and targeted investment in priority skills areas. For employers, these reforms present both opportunity and urgency.
Key reforms employers must prepare for
- Levy funds to expire after 12 months – reduced from the current 24-month window, requiring more proactive workforce planning.
- Removal of the 10 per cent government top-up – from April 2026, employers will only be able to access the value of their own levy contributions.
- Increase in co-investment to 25 per cent – once levy funds are exhausted, employer contributions will rise from 5 per cent to 25 per cent.
- Restrictions on Level 7 funding – from January 2026, most Level 7 apprenticeships will no longer be funded for apprentices aged 22 and over.
- Greater support for SMEs – fully funded apprenticeships for under 25s, with the previous 5 per cent co-investment removed.
- Introduction of short courses and modular training – including flexible provision in AI, digital and engineering skills from April 2026.
- Increase in apprentice minimum wage – rising to £8 per hour from April 2026.
These reforms are designed to create a more agile, skills-focused system. However, navigating funding rule changes, age restrictions and co-investment shifts requires informed planning.
BNU is committed to supporting learners and employers through these changes.
“At BNU apprenticeship delivery is central to our mission as a modern, career-focused university,” explains Professor Sarah Williams, Pro Vice-Chancellor for External Collaborations. “Our specialist apprenticeship team provides expert guidance on levy utilisation, workforce development strategy, programme design and compliance. We support both levy-paying organisations and SMEs to maximise funding opportunities, while building sustainable talent pipelines."
“Our apprenticeship provision is built around employer need and regional skills demand. With funding rules tightening and greater flexibility emerging under the Growth & Skills Levy, employers need clear guidance and a trusted partner. That’s exactly what we provide at BNU."
“Our commitment goes far beyond delivering programmes; we provide personalised support for every learner and tailored guidance for every employer. From navigating funding changes to designing workforce-ready training, our specialist apprenticeship team is here to make the process clear, accessible and impactful."
“We pride ourselves on being a trusted partner, helping organisations build stronger talent pipelines while empowering apprentices to thrive in their careers.”
BNU currently works in partnership with employers on degree apprenticeship programmes across sectors including health, business, engineering and digital industries.
To discuss how our expert team can support your apprenticeship recruitment, programme design and long-term skills planning, contact Apprenticeships@bnu.ac.uk.
The next Apprenticeship Open Day will take place on Thursday 2 April 2026.