Apprenticeship Funding Rules 2026–2027: Key Changes for Employers and Providers

Employers and providers with apprentices can now begin preparing for latest changes to apprenticeship funding, following the release of the latest apprenticeship funding rules.

Version 1 of the 2026 to 2027 rules applies to all learners in England who will be starting apprentice programmes between 1 August 2026 and 31 July 2027.

Published in June 2026 by the Department for Work and Pensions, these rules affect main providers and employer-providers who get government money to deliver apprenticeship training and on-programme assessment in England. They are also for employers of apprentices who are accessing funding for apprenticeships in England.

Policy updates include changes to and clarification of several key areas including learner eligibility for funding, support for English and maths training, what constitutes a subcontractor and use of an employer’s apprenticeship service account. They also contain reference to apprenticeship units – bitesize courses introduced in April 2026 which have their own distinct apprenticeship unit funding rules. These separate rules apply to all apprenticeship units starting on or after 28 April 2026, with the DWP set to publish a further version for apprenticeship units that start from 1 August 2026.

 Preparing for the rule changes with Onefile  

As the leading learner management platform, Onefile is exploring the changes to apprenticeship funding rules closely, examining in detail their wider implications for England’s apprentice training sector.

“Apprenticeship training delivery is undergoing constant change, something that is reflected in the latest updates to the funding rules. In response, we are already developing updates to our software to ensure it aligns with the new rules, alongside the exciting new tools we are always building to enhance and add value to the learner management experience.

At Onefile we constantly and consistently review our products and services in line with changes to government policy and the arrival of new programmes, ensuring that we not only meet but exceed our customers' expectations.”

Josh Redmayne, VP Research & Development, Onefile.

 Apprenticeship Units  

The arrival of apprenticeship units heralds a notable change in how and to whom skills are delivered, with this programme devised specifically for employers looking to reskill and upskill their existing employees. The first courses, rolled out from April 2026, are in high demand, emerging sectors such as clean energy and AI.

While apprenticeship units are continuing to bed in, some providers might find they’re having to wait for system updates or new functionality. But providers and employers using Onefile will be good to go straight away as our platform is designed to handle:

• multi-component programmes
• parallel tracking structures
• outcome based progression
• compliance ready reporting.

 Removal of top-up funding

The revised apprenticeship funding rules also remove reference to the 10% top-up funds which used to be added to Apprenticeship Service Accounts for those employers paying the apprenticeship levy. Under its Growth and Skills Levy reforms, the government is ending these automatic monthly contributions as of August 1, 2026.  

 Subcontractor definition review

The DWP is reviewing its definition of a subcontractor to make it clearer who is and who is not a subcontractor and what is meant by directly managed and controlled. New definitions for both will be implemented following an imminent subcontracting review, with any changes likely to come into effect from the beginning of 2027.

 English and Maths  

The updated funding rules also underscore a number of points around support for English and Maths training.

They include clarification that:

• the employer must establish whether the apprentice will study towards a standalone English and / or maths qualification as part of their apprenticeship at the initial assessment stage.
• where English and / or maths is an essential component of any mandatory qualification it must be completed as part of the apprenticeship. The awarding organisation can advise further.
• the provider is responsible for ensuring that active learning for English and / or maths is taking place in line with the signed training plan using an accurate start and end date of delivery.
• English and / or maths training must not be fully delivered by self-directed distance learning.
• apprentices may use their statutory entitlement to study English and / or maths under the adult skills fund budget while being on an apprenticeship.
• the provider must support apprentices who are exempt from regular English and / or maths to develop their English and / or maths skills, which could be done through material from level 1 or level 2 English and / or maths courses.

Also new to the funding rules are changes to: 

• The outcome of the initial assessment. The rules state that the link between the job role and the apprenticeship must be ‘clear and substantial, with the apprenticeship leading to full occupational competence for that role.’
• Employment arrangements (between the employer and the apprentice). The rules clarify that employers must keep their PAYE information in their apprenticeship service account up to date.
• Apprentices who need access to learning support. The rules confirm that where the learning support need is stable, due to a permanent disability, and this is unlikely to change, then reviews may be ‘light touch.’
  

There’s obviously a great deal to unpack here, and it’s important that employers and providers stay on top of the rules to ensure they don’t lose their government funding.

As the leading learner management platform, Onefile has a range of smart, user-friendly software helping you to stay compliant with rule changes at all times. Onefile products support you to manage your learners right through initial application and onboarding through to gateway and end point assessment.

To learn more about how Onefile can help you navigate the latest rule changes and unlock valuable funding, contact us for a discovery call.