Funding for most Level 7 apprenticeships to end from January 2026, with investment redirected towards training routes for 16 to 21-year-olds in priority sectors such as construction
The department for education has confirmed a significant restructuring of the apprenticeship system in England, ending public funding for most Level 7 apprenticeships from January 2026 and introducing a new programme of foundation-level apprenticeships aimed at under-22s.
The move forms part of the government’s broader skills strategy, intended to address workforce shortages in key sectors including construction. The changes are backed by a £3bn apprenticeship budget for 2025-26, the largest since the apprenticeship levy was introduced in 2017.
“A skilled workforce is the key to steering the economy forward, and today we’re backing the next generation by giving young people more opportunities to learn a trade, earn a wage and achieve and thrive,” said Education Secretary Bridget Phillipson.
Alongside this, the government has announced £132m for Skills Bootcamps in 2025-26 across a range of priority sectors, including £100 million specifically allocated to construction.
In addition, £14 million in adult skills funding will be devolved to regional mayors to support up to 5,000 extra learners in the construction sector.
The reforms are partially funded through a 32 percent increase in the Immigration Skills Charge, which the government claims will support up to 45,000 new domestic training places. The charge is levied on employers who sponsor overseas workers.
The changes follow a prolonged decline in apprenticeship starts and come amid concerns about the number of 16 to 24-year-olds not in education, employment or training.
From 2026, the apprenticeship levy will no longer cover Level 7 (master’s level) training for apprentices aged 22 and above. Only those aged 16 to 21, or up to 24 in some specific circumstances, will remain eligible for public funding. Employers wishing to continue training older staff at Level 7 will need to self-fund.
The department for education said the reforms are intended to “rebalance” the use of levy funding towards lower-level training with greater potential impact on entry-level employment. Level 7 apprenticeships account for a small proportion of starts among younger age groups. In 2023-24, only 2 percent of Level 7 starts were for under-19s and less than 35 percent were for those under 25.
Apprenticeships affected include chartered town planner and architect pathways.
The government is also introducing seven new foundation apprenticeships aimed at 16 to 21-year-olds, including for construction and engineering. These are classified at Level 2, equivalent to GCSEs, and are designed to provide a broad introduction to work-based learning. Legal changes will reduce the minimum apprenticeship duration from 12 to eight months to enable the new courses to begin from August.
Employers that support, retain and progress foundation apprentices will be eligible for incentive payments of up to £2,000 per learner.
Phillipson said: “When we invest in skills for young people, we invest in a shared, stronger economic future.”
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