Apprenticeships in Flux: What Employers Need to Know and Why the Future Is Still Bright

With Skills England assuming oversight and a new national skills agenda taking shape, 2026 marks a turning point for apprenticeships. But while policy change often brings uncertainty, this year’s reforms also create enormous opportunity for employers that act early.

A New Landscape, But Strong Employer Demand

Employer engagement with apprenticeships is at its strongest level since the levy launched. Programme uptake is rising across industries, and for the first time, the National Apprenticeship Budget is projected to run into overspend, a reflection of the clear value businesses now place on apprenticeships as a workforce strategy.

The shift to Skills England signals a more centralised approach to skills planning, but the employer voice remains powerful. And employers who proactively shape their early‑career and upskilling strategies will be best positioned in this new environment.

What’s Changing and Why Employers Can Be Confident About the Future

While the reforms introduce changes to funding, eligibility and priorities, each shift also presents new chances for employers to build capability in smarter, more targeted ways.

Key changes and employer positives include:

1. A renewed focus on young people (under 25)

This supports employers building foundational pipelines, essential for succession, diversity, and long‑term capability.

2. Support for priority industry sectors

Sectors identified as high‑growth within the UK Industrial Strategy will be prioritised to accelerate national productivity and economic competitiveness. With Financial Services recognised as one of these eight priority sectors, now is the time for our industry to unite, amplify our collective voice, and actively shape how these opportunities are deployed at both national and regional levels. By working together, we can secure the skills investment our sector needs, influence the future talent agenda, and maximise the impact of apprenticeships in driving long‑term growth.

3. Updated levy rules (expiry windows, top‑ups, co‑investment)

While these introduce more rigour, they also encourage:

• faster deployment,
• stronger strategic workforce planning, and
• greater clarity around ROI.

In other words, employers that plan early will benefit most.

What This Means for Adult Upskilling and Higher‑Level Pathways

Although the emphasis is shifting toward younger learners, adult upskilling remains critical, especially with AI accelerating role change. Many employers are exploring blended pathways using apprenticeships, and over time, shorter units, and the new Growth & Skills Levy to create multi‑tiered development frameworks.

This more flexible approach helps employers:

• upskill at pace,
• redeploy talent cost‑effectively,
• and reduce dependency on external recruitment.

The Employer Bottom Line

The message to employers is clear: this is not a moment to pause; it’s a moment to strengthen your skills strategy. Those who act now will build the most resilient workforce in the years ahead.