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Apprenticeship Rules – Key Changes Employers Need to Know

The government is making significant changes to the apprenticeship landscape, with the goal of boosting economic growth and offering more flexibility to employers, writes Travlaw paralegal Rosie Riley. These changes, announced in February 2025 during National Apprenticeship week (10 -16 February 2025) , are designed to streamline the apprenticeship process and make it more accessible for both employers and apprentices. Here’s what you need to know.

The government is cutting down on the ‘red tape’ associated with apprenticeships. The annual Apprenticeship Funding Rules, released by the Department for Education, introduce several measures aimed at reducing administration for employers and apprentices. The onboarding process will be faster, and mandatory checkpoints throughout the apprenticeship will be reduced. This is a welcome shift for employers, making it easier to onboard and manage apprentices without getting slowed down by unnecessary intricacies.

In a move that expands access to apprenticeships, the government is easing the English and Maths requirements. Previously, apprentices without the necessary GCSE qualifications in these subjects would have to take a Level 2 qualification. Now, employers will have the discretion to decide whether these qualifications are necessary, opening the door for more young people to enter apprenticeship programs without the barrier of additional qualifications.

This change is part of a wider initiative to offer apprenticeships to a more diverse group of individuals, including those with lower learning capabilities, ensuring more people have the opportunity to pursue a career through apprenticeships.

Another key update is the revision of the minimum active learning requirement. Previously, apprentices were required to complete active learning at set intervals throughout their apprenticeship. Under the new rules, apprentices will only need to engage in active learning at least once every three months. This gives employers and apprentices more flexibility to design apprenticeship programs that fit their needs without being constrained by rigid timelines.

Starting in August 2025, the minimum duration for an apprenticeship will be reduced from 12 months to 8 months. This change aims to allow employers to train more workers in a shorter time frame, which will help boost jobs and contribute to economic growth. It’s a big shift that allows businesses to get the skilled workers they need more quickly.

The Apprenticeship Levy, a tax on larger employers to fund apprenticeship training, is also set to be replaced by the new Growth and Skills Levy. The Apprenticeship Levy is a tax on large employers (who have a pay bill of at least £3 million annually) that can be accessed to pay for training apprentices. This approach was criticised for being too restrictive and for not allowing businesses enough flexibility to use the funds. Under the new system, employers will have more freedom to use the funds for not just apprenticeships but also short courses, online classes, and skills boot camps. The idea is to make apprenticeships more accessible and relevant to today’s workforce by offering a wider variety of training options.

In addition, the government’s new Skills England branch will allocate 50% of the funds to sectors where there is a high demand for skilled workers, like healthcare, engineering, construction, and social care. This targeted approach will help ensure that the apprenticeship funds are used effectively and align with the skills employers need most.

With these changes coming into effect, employers will need to adjust their apprenticeship strategies. The flexibility in qualifications and training methods should make it easier to offer apprenticeships and develop the workforce of the future. However, to take full advantage of these updates, employers will need to stay informed about the new rules and ensure they are utilising the available funds correctly.

Employers should also start thinking about how to integrate apprenticeships into their recruitment strategies. With more flexibility, apprenticeships will become an even more valuable tool for bringing new talent into your business. However, it is important to note that the presence of Level 7 apprenticeships in the market are likely to reduce to allow for younger workers to enter the market.

It’s important to remember that, with the changes to the Apprenticeship Levy and the introduction of the Growth and Skills Levy, there’s more opportunity than ever to invest in training and development. Taking advantage of these funding options will not only help your business grow but also ensure that the next generation of workers has the skills needed to thrive in the travel industry and beyond.

If you have any questions or comments on this article, please contact our Head of Employment Ami Naru, email advice@travlaw.co.uk. or call us on 0113 258 0033.

This article was originally published on: 27 February 2025

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