If you train apprentices aged 25 and over, your costs could be about to go up.

According to FE Week, ministers are drawing up plans that would see employers pay 25% of the training and assessment costs for older apprentices, with the government covering the other 75%. Nothing is confirmed yet, but if it goes ahead it will change how a lot of businesses plan their training. So it’s worth getting ahead of it now.

What’s being proposed

• Apprentices aged 16 to 24 would stay fully funded by the government.
• Apprentices aged 25 and over would be funded at 75%, with the employer paying the remaining 25%.
• It would apply to all employers. That includes smaller businesses that don’t pay the apprenticeship levy, who currently only pay 5% for older apprentices.
• Timing: The Guardian reports the change could be phased in from September 2027.

Levy-paying employers who run out of levy funds have already been on this 75/25 split for apprentices aged 25+ since August this year. The new proposal would extend it to everyone.

The plan is expected to form part of the government’s response to Alan Milburn’s review of young people not in education, employment or training, which has been pushed back until after the Budget.

Why is this happening?

There are two big drivers.

Getting more young people into apprenticeships. Apprenticeship starts among younger learners have fallen by around 40%. Ministers hope that making older apprentices more expensive will nudge employers towards hiring young people instead.

Pressure on the budget. The apprenticeship budget has been fully spent in recent years, largely because of rising spend on higher-level apprenticeships, which tend to be taken by older learners and cost more to deliver. We’ve already seen Level 7 apprenticeships defunded for anyone aged 22 and over, and 16 more standards removed this year, including popular management programmes. The government is also reported to be looking at other standards that look more like general CPD than a specific occupation.

Not everyone is convinced. One source close to government told FE Week the reasoning doesn’t add up, because employers hire based on what their business needs, not the age of the candidate.

Our view

We’re all for getting more young people into good jobs. It’s a big part of what we do. But apprenticeships aren’t only for school and college leavers. They’re one of the best ways to upskill the people already in your business, retrain staff into new roles and hold on to the talent you’ve got. Making that harder risks hitting the businesses that rely on it most, especially smaller employers across the North East.

What it could cost you

Here’s a simple example. Say you’re a non-levy employer training a 25-year-old on an apprenticeship with a £10,000 funding band.

• Today: you pay 5%, which is £500.
• Under the proposal: you’d pay 25%, which is £2,500.

That’s five times as much for the same programme. Across a few learners, it adds up quickly.

What you can do now

1. Look at your training plans for 2027. If you’re planning to upskill existing staff, think about when that training starts. The final details and any transition arrangements haven’t been published yet, so keep an eye on this one.

2. Think about young talent. Apprentices aged 16 to 24 will stay fully funded, and SMEs can also get a £2,000 hiring payment for taking on an apprentice in that age group. If you’ve been thinking about bringing in new talent, now is a good time.

3. Make every pound count. With funding getting tighter, choose programmes that tie directly to real roles and skills gaps in your business.

4. Talk to us. Funding rules are changing fast and it’s easy to lose track. We can help you work out what applies to you and plan around it.

How We Are Zenith can help

Whether you want to recruit young talent, develop your existing team or keep hold of the people you’ve got, we’ll help you find the right route and make the most of the funding available. Get in touch with our team for a chat.