Apprenticeship Central has explained the Budget’s impact on apprenticeships. The company discusses the apprenticeship levy, Youth Guarantee, Apprenticeship system reforms, and wage increases.
The Apprenticeship Levy is being replaced by the Growth & Skills Levy, designed to fund both apprenticeships and shorter training routes.
Eleanor Baker Barnes, Commercial Director, said: “This is a wake-up call for Levy payers. Without a clear apprenticeship strategy, you’ll lose funding faster than ever before.
“For SMEs, the fully funded apprenticeships reflect what we’re actually seeing in reality, and that’s more people over 22 wanting to access apprenticecships.”
In terms of the Youth Guarantee, £820 million has been allocated to ensure 16–24 year olds are not left out of work or training.
From April 2026, apprentice minimum wage will rise to £8.00 per hour.
Apprenticeship Central encourages employers to review levy position and expiry dates, identify current and future skills gaps, plan structured pipelines for under-25 talent, and prepare for wage increases with productivity measures
Nick Connor, CEO of the IMI said: “The IMI is delighted that our pre-budget call for action to improve access to apprenticeships has been partly addressed in today’s Budget.
“With the introduction of free apprenticeships for under 25s in SMEs, this is a significant step for a sector where 96,000 small and medium sized businesses play such a critical role.
“The IMI has continually raised with government the difficulties SMEs face in navigating the Levy system, so this is an incredibly welcome move.
However, the IMI still expects to see Levy reform for larger businesses.
Connor said: “Our data shows that Levy utilisation in automotive is significantly lower than in other industries.
“Complex rules and inflexible structures prevent businesses from accessing funds for short, targeted courses that are vital for maintaining safety and compliance – and for the government’s net zero ambitions.
“We will, therefore, continue to work with the relevant departments and industry stakeholders to get this issue addressed.”
