Harnessing the Opportunity of the Changes to UK Apprenticeship Funding

Recently, at Acrobat Talent, we’ve participated in the end-to-end assessment process for numerous talented candidates vying for school leaver apprentice roles within asset management in a small city in middle England. What truly stood out was the remarkable calibre, drive, and enthusiasm of these young people - skills and motivation that far outweigh the limited opportunities available to them locally. They are eager to start their careers in financial services, bursting with ideas and ambition, yet the number of viable roles in their area remains scarce. 

Our client, a small but forward-thinking employer specialising in responsible investment, exemplifies the kind of organisation committed to nurturing local talent and providing meaningful opportunities. Their dedication to offering innovative roles and growing their own workforce highlights an important shift in the apprentice landscape. 

In this blog, we’ll explore how the evolving apprenticeship environment, bolstered by the Government's modern industrial strategy and insights from Skills England - can inspire more smaller companies to embrace apprenticeships as a vital pathway for talent development. What steps can be taken to encourage these organisations to invest in their future workforce and, in turn, create more opportunities for ambitious young people in their communities.

If your organisation is looking to hire future leaders and would like support in accessing talent and support in navigating the ever-changing world of apprenticeships, get in touch with us today. 

Apprenticeships in Financial Services 

The UK government's £3bn apprenticeship funding overhaul is reshaping the skills landscape, with significant implications for financial services employers who must navigate new policies including foundation apprenticeships, shorter training durations, and the transition to a Growth and Skills Levy aimed at boosting youth employment and addressing critical sector skills gaps. 

Understanding the Government Apprenticeship Reforms 

The UK's apprenticeship system is undergoing substantial reform with changes taking effect from 2025-2026. From January 2026, employers will only be able to use levy funds to support level 7 (master's level) apprenticeships for existing apprentices and those aged 16-21, redirecting funding toward lower and intermediate-level training. Minimum apprenticeship duration will be reduced from 12 to 8 months starting August 2025, allowing for faster qualification of talent. Additionally, employers now have discretion over English and Maths requirements for apprentices aged 19 and over, potentially enabling up to 10,000 more apprentices to qualify annually. These reforms accompany the introduction of foundation apprenticeships focused on industrial strategy priority areas including Construction, Engineering, Health and Social Care, Financial Services and Digital, with the first programmes available from August 2025.

What are Skills England Key Findings? 

Skills England's first report identifies key challenges limiting growth and opportunity in the UK skills landscape, with particular focus on reducing barriers for learners and small-to-medium enterprises (SMEs). Their analysis has driven several significant policy shifts, including more flexible off-the-job training requirements that will be set on a standard-by-standard basis from August 2025, replacing the previous universal 20% rule. This evidence-based approach has also informed the development of foundation apprenticeships, which blend technical and employability skills to support progression into further apprenticeships or employment. 

The organisation's sector-specific assessments highlight financial services as a priority growth area requiring more adaptable, employer-responsive training pathways [source].

Only 16% of employers surveyed by the Institute of Student Employers indicated readiness to offer foundation apprenticeships from August 2025, though 59% expressed interest in future delivery, suggesting more time and clarity are needed for successful implementation. These findings have directly influenced the government's decision to reform the apprenticeship levy into the broader Growth and Skills Levy, which will fund non-apprenticeship courses in priority skills areas beginning April 2026. 

Employer Implementation Strategies

Navigating the 2025-2026 apprenticeship reforms requires strategic planning from financial services employers. Companies should consider transitioning toward becoming skills-based organisations (SBOs), aligning their talent development with the government's economic growth priorities. For immediate action, employers should review their current apprenticeship programmes, particularly any Level 7 offerings that will face funding restrictions from January 2026 while exploring opportunities to develop foundation apprenticeship pathways that qualify for employer incentive payments.

When implementing these changes, organisations should focus on creating robust talent pipelines from entry-level positions, particularly targeting 16-21 year-olds who remain eligible for full funding across all apprenticeship levels According to ISE's Student Development Survey 2025, 26% of employers are "broadly supportive with some concerns" about the reforms, while 34% are still awaiting more clarity before making significant changes to their apprenticeship strategies. 

For a no-obligation conversation with our experienced early careers talent acquisition team contact us today.

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