Apprenticeship funding changed on the 1st August, and if you\u2019re an employer investing in your team\u2019s development, it\u2019s worth understanding exactly what that means for your learning and development budget before you plan your next intake.<\/p>\n
The good news is that the case for investing in Apprenticeships hasn\u2019t changed. If anything, the changes make it stronger.<\/p>\n
What\u2019s Changing from 1 August 2026<\/h2>\n
New rules from the Department for Work and Pensions apply to all apprenticeships starting on or after 1 August 2026. Some of what follows affects levy-paying employers, some affects non-levy payers, and it\u2019s worth knowing which category you fall into before you assume a change applies to you.<\/p>\n
Definitions<\/h3>\n
A non-levy payer is defined as an employer who has a payroll bill of less than \u00a33 million per year. A levy payer has a payroll of \u00a33 million or more which triggers a 0.5% levy or tax. This paid tax money accumulates in a Digital Service Account (DAS) which can then be used to pay for apprenticeship products (full programmes and smaller units).<\/p>\n
The government\u2019s big goal now is to get young people into work and to reduce rising unemployment.<\/p>\n
To achieve this goal they have made the following changes to the apprenticeship rules:<\/p>\n
LEVY PAYER UPDATES<\/h3>\n\n- Levy payers have just 12 months to spend new funds added to the DAS account from 1\/8\/26.<\/li>\n<\/ul>\n
\n- Levy payers will continue to receive \u00a31000 cash incentives <\/strong>for new hires aged 16-18, that are enrolled onto an Apprenticeship.<\/li>\n<\/ul>\n
\n- If levy funds are fully spent, then the co-investment charge will now be 25%. However, levy transfers are an option from other levy payers with surpluses to supplement this cost.<\/li>\n<\/ul>\n
\n- Levy funds can now be used to pay for NEW Apprenticeship Units. If levy funds have been fully utilised then a contribution of just 5% is required (not the 25% outlined above).<\/li>\n<\/ul>\n
\n- Levy payers continue to benefit from not paying any Employers National Insurance Contributions<\/em> for employees enrolled on Apprenticeships (if aged 16-24) \u2013 which can provide significant cost savings over the full duration of the programme.<\/li>\n<\/ul>\n
NON LEVY PAYER UPDATES<\/h3>\n\n- Employers will receive cash incentives<\/strong> to recruit new hires and enrol them on to an Apprenticeship. \u00a33000 (if aged 16-18) and \u00a32000 (if aged 19-24).<\/li>\n<\/ul>\n
\n- All apprenticeship training costs will be 100% paid now, for employees aged 16-24 and 95% paid for employees aged 25 plus (no age limit).<\/li>\n<\/ul>\n
\n- New apprenticeship units for leaders and managers (Short courses lasting just 8 weeks) \u2013 100% of cost fully covered.<\/li>\n<\/ul>\n
\n- Employers continue to benefit from not paying any Employers National Insurance Contributions for employees enrolled on Apprenticeships (if aged 16-24) \u2013 which can provide significant cost savings over the full duration of the programme.<\/li>\n<\/ul>\n
Why It\u2019s Still Worth Investing<\/h2>\n
None of the above changes the fundamental case for apprenticeships: a government-funded route to build skills and the outcomes achieved that impact the individual and the business.<\/p>\n
So let\u2019s look at some key outcomes and results. Every year, TAA benchmarks its success rates against the UK average, and each year, the results showcase the benefits to employees and the organisations they work for.<\/p>\n![\"Infographic](\"https:\/\/theapprenticeacademy.co.uk\/wp-content\/uploads\/2026\/08\/TAA-apprenticeship-exam-and-success-rates.png\")
<\/figure>\nAAT Exam Results<\/h3>\n
Across Level 2<\/a>, Level 3<\/a> and Level 4 AAT<\/a>, TAA learners sit above the UK average on every module we track. In the period January to December 2025, standout results included a 95.7% pass rate on Introduction to Bookkeeping against a UK average of 82.9%, and a 100% pass rate on Audit and Assurance against a UK average of 81.3%. Business Tax, a notoriously difficult module, still saw TAA learners outperform the national average.<\/p>\nCIPS Exam Results<\/h3>\n
The same pattern holds on our CIPS programmes<\/a>. At Level 5, TAA achieved 100% pass rates across five consecutive modules, including Managing Supply Chain Risk and Advanced Negotiation. At Level 3, the distinction rate sits at 90%, meaning nine in ten learners don\u2019t just pass, they pass at the highest grade available.<\/p>\nWhat Our Apprentices Say<\/h3>\n
Numbers tell part of the story. Here\u2019s the rest of it, in the words of our apprentices:<\/p>\n
\u201cI had a great experience with The Apprentice Academy. Huge shoutout to my amazing coach Ellie, she supported me all the way through. My teacher Ian was amazing and I wouldn\u2019t have been able to pass my exams without him.\u201d \u2014 Lily, Theresa Bowers Accounting Ltd<\/p>\n
\u201cI have just done my first exam and got close to 100% in it. The programme is very well structured and thought out in a way that it becomes manageable and not overwhelming.\u201d \u2014 Atish Kaleeah, London Borough of Sutton<\/strong><\/p>\n\u201cI had a great coach who supported me through two apprenticeships so far with excellent results. Very well structured plan, great tutors to be prepared for the exams.\u201d \u2014 Ivett, Total Access Health Limited<\/strong><\/p>\n\u201cWell co-ordinated with support and guidance throughout the whole apprenticeship covering each topic and criteria to ensure I had the best chance possible of success with my exams.\u201d \u2014 Dominic, Network Rail<\/strong><\/p>\nRising Success Rates, Year on Year<\/h3>\n
Every TAA programme is built around the 3Cs and 3Ps: developing apprentice Confidence, Competence and Career Capability, which in turn drives Productivity, Pay Rises and Promotions in the businesses that invest in them.<\/p>\n
You can see how our figures compare to the national picture using our Compare the Market tool<\/a>.<\/p>\nReady to Find Out More?<\/h2>\n
Funding rules will keep changing over time. What won\u2019t change is the value of getting your people properly trained by people who know how to get them through their training and exams.<\/p>\n
- \n
- Levy payers will continue to receive \u00a31000 cash incentives <\/strong>for new hires aged 16-18, that are enrolled onto an Apprenticeship.<\/li>\n<\/ul>\n
- \n
- If levy funds are fully spent, then the co-investment charge will now be 25%. However, levy transfers are an option from other levy payers with surpluses to supplement this cost.<\/li>\n<\/ul>\n
- \n
- Levy funds can now be used to pay for NEW Apprenticeship Units. If levy funds have been fully utilised then a contribution of just 5% is required (not the 25% outlined above).<\/li>\n<\/ul>\n
- \n
- Levy payers continue to benefit from not paying any Employers National Insurance Contributions<\/em> for employees enrolled on Apprenticeships (if aged 16-24) \u2013 which can provide significant cost savings over the full duration of the programme.<\/li>\n<\/ul>\n
NON LEVY PAYER UPDATES<\/h3>\n
- \n
- Employers will receive cash incentives<\/strong> to recruit new hires and enrol them on to an Apprenticeship. \u00a33000 (if aged 16-18) and \u00a32000 (if aged 19-24).<\/li>\n<\/ul>\n
- \n
- All apprenticeship training costs will be 100% paid now, for employees aged 16-24 and 95% paid for employees aged 25 plus (no age limit).<\/li>\n<\/ul>\n
- \n
- New apprenticeship units for leaders and managers (Short courses lasting just 8 weeks) \u2013 100% of cost fully covered.<\/li>\n<\/ul>\n
- \n
- Employers continue to benefit from not paying any Employers National Insurance Contributions for employees enrolled on Apprenticeships (if aged 16-24) \u2013 which can provide significant cost savings over the full duration of the programme.<\/li>\n<\/ul>\n
Why It\u2019s Still Worth Investing<\/h2>\n
None of the above changes the fundamental case for apprenticeships: a government-funded route to build skills and the outcomes achieved that impact the individual and the business.<\/p>\n
So let\u2019s look at some key outcomes and results. Every year, TAA benchmarks its success rates against the UK average, and each year, the results showcase the benefits to employees and the organisations they work for.<\/p>\n
<\/figure>\nAAT Exam Results<\/h3>\n
Across Level 2<\/a>, Level 3<\/a> and Level 4 AAT<\/a>, TAA learners sit above the UK average on every module we track. In the period January to December 2025, standout results included a 95.7% pass rate on Introduction to Bookkeeping against a UK average of 82.9%, and a 100% pass rate on Audit and Assurance against a UK average of 81.3%. Business Tax, a notoriously difficult module, still saw TAA learners outperform the national average.<\/p>\n
CIPS Exam Results<\/h3>\n
The same pattern holds on our CIPS programmes<\/a>. At Level 5, TAA achieved 100% pass rates across five consecutive modules, including Managing Supply Chain Risk and Advanced Negotiation. At Level 3, the distinction rate sits at 90%, meaning nine in ten learners don\u2019t just pass, they pass at the highest grade available.<\/p>\n
What Our Apprentices Say<\/h3>\n
Numbers tell part of the story. Here\u2019s the rest of it, in the words of our apprentices:<\/p>\n
\u201cI had a great experience with The Apprentice Academy. Huge shoutout to my amazing coach Ellie, she supported me all the way through. My teacher Ian was amazing and I wouldn\u2019t have been able to pass my exams without him.\u201d \u2014 Lily, Theresa Bowers Accounting Ltd<\/p>\n
\u201cI have just done my first exam and got close to 100% in it. The programme is very well structured and thought out in a way that it becomes manageable and not overwhelming.\u201d \u2014 Atish Kaleeah, London Borough of Sutton<\/strong><\/p>\n
\u201cI had a great coach who supported me through two apprenticeships so far with excellent results. Very well structured plan, great tutors to be prepared for the exams.\u201d \u2014 Ivett, Total Access Health Limited<\/strong><\/p>\n
\u201cWell co-ordinated with support and guidance throughout the whole apprenticeship covering each topic and criteria to ensure I had the best chance possible of success with my exams.\u201d \u2014 Dominic, Network Rail<\/strong><\/p>\n
Rising Success Rates, Year on Year<\/h3>\n
Every TAA programme is built around the 3Cs and 3Ps: developing apprentice Confidence, Competence and Career Capability, which in turn drives Productivity, Pay Rises and Promotions in the businesses that invest in them.<\/p>\n
You can see how our figures compare to the national picture using our Compare the Market tool<\/a>.<\/p>\n
Ready to Find Out More?<\/h2>\n
Funding rules will keep changing over time. What won\u2019t change is the value of getting your people properly trained by people who know how to get them through their training and exams.<\/p>\n
- Employers continue to benefit from not paying any Employers National Insurance Contributions for employees enrolled on Apprenticeships (if aged 16-24) \u2013 which can provide significant cost savings over the full duration of the programme.<\/li>\n<\/ul>\n
- New apprenticeship units for leaders and managers (Short courses lasting just 8 weeks) \u2013 100% of cost fully covered.<\/li>\n<\/ul>\n
- All apprenticeship training costs will be 100% paid now, for employees aged 16-24 and 95% paid for employees aged 25 plus (no age limit).<\/li>\n<\/ul>\n
- Employers will receive cash incentives<\/strong> to recruit new hires and enrol them on to an Apprenticeship. \u00a33000 (if aged 16-18) and \u00a32000 (if aged 19-24).<\/li>\n<\/ul>\n
- Levy payers continue to benefit from not paying any Employers National Insurance Contributions<\/em> for employees enrolled on Apprenticeships (if aged 16-24) \u2013 which can provide significant cost savings over the full duration of the programme.<\/li>\n<\/ul>\n
- Levy funds can now be used to pay for NEW Apprenticeship Units. If levy funds have been fully utilised then a contribution of just 5% is required (not the 25% outlined above).<\/li>\n<\/ul>\n
- If levy funds are fully spent, then the co-investment charge will now be 25%. However, levy transfers are an option from other levy payers with surpluses to supplement this cost.<\/li>\n<\/ul>\n