News

Apprenticeship Funding Rules Update, Key Changes in Version 2 (July 2025)​

Introduction
The DfE has released version 2 of the Apprenticeship Funding Rules for 2025/26, and there are some important practical updates you need to be aware of, especially around Off-the-Job Training (OTJT), programme duration, and employer statements.

Here is a quick rundown of what’s changed since V1 (May 2025).

Off-the-Job Training (OTJT)

  • Transition period introduced: 73 apprenticeship standards now have revised OTJT minimum hours for starts between August and December 2025.
  • From January 2026, these may revert or be further adjusted following a Skills England review.
  • Check Annex C for affected standards.

Foundation Apprenticeships

  • OTJT minimums are set at 187 hours for the first 7 Foundation Apprenticeships

Employer Statement

  • Now required if planned OTJT is under-delivered (but still above the minimum).
  • Must be signed by the employer

Recognition of Prior Learning (RPL)

  • RPL reductions should now be taken from your own planned delivery model, not from the minimum hours.

Minimum Programme Duration

  • Now 8 months (down from 12) if all other conditions are met.
  • No automatic extensions for part-time or zero-hours contracts, provider must set a realistic duration.

English & Maths (for 19+ learners)

  • Employers must opt-in learners for English/Maths at initial assessment.
  • If not opted in, no need for diagnostics or prior attainment evidence.

DfE/ESFA Language

  • All references are now to DfE only (ESFA no longer used).

Care Leavers

  • More detail provided on bursary eligibility, evidence, and payment process.

Subcontracting

  • Stricter rules for high-risk providers and tighter oversight under £100k threshold.
  • Annual rationale for any subcontracting now required by 31 October.

End-Point Assessment

  • Aligned with new Assessment Principles – further changes expected as more standards are reviewed.

What you need to do:

• Review Annex C and update any affected programme plans.
• Revisit your OTJT planning tools and RPL processes.
• Ensure staff are briefed on new minimum durations and the employer statement requirement.
• Update internal documentation to reflect DfE language changes.

These changes are designed to give us more flexibility, but they require action to stay compliant.
Useful Links:

Apprenticeship funding rules, 2025 to 2026 – GOV.UK

Annex C – OTJT Minimum Hours

Apprenticeships: recognition of prior learning – GOV.UK