Autumn Budget 2025: What Employers Need to Know About the Apprenticeship Reforms
The Autumn Budget 2025 introduces a series of reforms aimed at making apprenticeships more accessible, better funded and easier for employers to manage. With a strong focus on young people and early-career development, the changes present new opportunities for organisations looking to build talent pipelines.
At Hawk Training, we welcome the government’s direction and believe these measures will help more employers benefit from apprenticeships while supporting young people into long-term careers.
Major Funding Commitments to Skills
The government has allocated £725 million to the new Growth and Skills Levy, forming part of a broader package designed to upgrade the nation’s skills infrastructure. For employers, this signals a renewed emphasis on apprenticeships as a primary route into skilled employment and a clear commitment to ensuring businesses have access to the talent they need.
Fully-Funded SME Apprenticeships for Under-25s
A key announcement for smaller employers is the decision to fully fund apprenticeships for eligible under-25s in SMEs. This removes the usual training contribution and reduces a major barrier that has historically prevented some small organisations from engaging with apprenticeships.
This change is expected to increase opportunities for younger workers while giving small businesses a no-cost route to recruiting and developing early-career talent.
Although it is not currently clear on the date that this will come into effect, we will ensure to keep our employers updated.
Further Apprenticeship System reforms
The Budget also outlines a package of system reforms aimed at making apprenticeships easier to use. These include:
- Removal of the additional uplift to levy accounts
- A 12-month expiry window for levy funds
- A 75% co-investment rate for levy-paying employers once their levy funds run out
- Streamlining the number of apprenticeship standards.
Collectively, these changes reduce administrative complexity and help employers plan their training spend more effectively.
Short Courses Coming in 2026
From April 2026, employers will be able to access new short courses designed to offer more flexible training options. These courses will support rapid upskilling and help organisations respond to changing skills needs without committing to a full-length apprenticeship.
We are yet to receive the specifics on this (i.e. what courses, how these will be funded, etc.), however, if you are looking for short courses to develop your organisation’s learning and development offering, we have a number of short courses available here.
Minimum Wage Increase for Apprentices
The minimum hourly rate for apprentices will rise to £8.00 from April 2026. Employers should take this into account when planning workforce budgets, but many will welcome the positive impact this will have on recruitment and retention.
A Message from Crawford Knott, Managing Director of Hawk Training
“These reforms mark a positive step forward for employers and young people alike. Fully-funded opportunities for SMEs, a more streamlined system and the introduction of short courses will make apprenticeships more flexible and accessible than ever before. At Hawk Training, we’re committed to helping businesses navigate these changes and maximise the benefits for their workforce.”
— Crawford Knott, Managing Director, Hawk Training
How Hawk Training Can Support Employers
With significant change on the horizon, Hawk Training is ready to help employers:
- make the most of the updated levy system
- explore fully-funded apprenticeship opportunities
- plan workforce development around short-course availability
- recruit young talent into sustainable career routes
The Autumn Budget sets the stage for a more employer-friendly apprenticeship system – one that makes it easier to grow, train and retain the skilled workforce your organisation needs.
Talk to us today about your Apprenticeship plans for 2026.
