The Autumn Budget 2025 confirms that the apprenticeship and skills system is evolving, with significant changes that will directly impact how employers plan, fund, and deliver training. The most important updates relate to the simplification of the apprenticeship system and several changes to the apprenticeship levy. Corndel’s expertise ensures you can navigate these changes with confidence and maximise the value and impact of your investment.
The Evolving Apprenticeship Landscape
Today’s announcements reflect the government’s ongoing commitment to tackling skills gaps and supporting economic growth. While there are headline investments in youth and sector-specific skills, the most immediate and concrete changes for employers are those affecting the apprenticeship system and levy funding.
Apprenticeship System Evolution: What’s Changing?
In the Autumn budget, the government announced a series of reforms intended to evolve the apprenticeship system. While some details remain to be clarified, the main proposals include:
- Introduction of Apprenticeship Units (Short Courses):
Shorter, modular training options are expected to be available from April 2026. Further detail on implementation and scope is awaited. - Streamlined Apprenticeship Standards:
The government has signalled its intention to work with employers to review and update apprenticeship standards. The aim is to reduce bureaucracy, but the practical impact for organisations is not yet clear. - Full Funding for SME Apprenticeships (Under-25s):
There is a proposal for full government funding for apprenticeships for under-25s in small and medium-sized businesses. Timelines and eligibility criteria are yet to be confirmed.
Why this matters:
At this stage, these announcements reflect the government’s policy direction rather than immediate, concrete changes for employers. Corndel will continue to monitor developments and provide clear, practical guidance as further details emerge.
“Today’s budget reinforces the urgent need for employers to act decisively on skills development. At Corndel, we believe partnerships and innovation are key to closing the gap.
Through our AI, Data and Leadership Academies and collaborations with world-class institutions like Imperial Executive Education and Microsoft, we’re helping organisations turn policy into practice—building future-ready talent that drives growth.”
Major Levy Changes: What Employers Need to Know
The most significant financial changes for employers relate to how apprenticeship levy funds are managed and accessed:
- Expiry Window Reduced to 12 Months:
Levy funds will now expire after 12 months, rather than 24 months. This means employers have half the time to use their funds before they are lost. - Removal of the Additional 10% Uplift:
The government will no longer top up employer levy accounts by 10%. Employers will only be able to access what they pay in. - Co-investment Rate Change:
Once levy funds are exhausted, the government will continue to support employers by covering 75% of training costs, with employers contributing the remaining 25%.
What this means for you:
- There is a greater need for timely, strategic planning to make the most of your levy funds.
- For organisations that value skills development and choose to invest beyond their levy, the co-investment model still remains highly attractive: employers pay 25% of the cost, with the government funding the remaining 75%. This enables you to deliver even more high-quality training and development for your workforce, with substantial government support.
- Proactive management of your apprenticeship strategy is now essential to maximise value and take full advantage of available funding.
Additional Announcements: Youth Guarantee, Growth & Skills Levy, and Targeted Investment
While the above changes are most relevant to employers’ day-to-day operations, the budget also includes:
- £820 million for the Youth Guarantee:
Supporting every young person aged 16–24 to earn or learn. - £725 million for the Growth and Skills Levy:
Creating high-quality training opportunities and addressing NEET rates. - Targeted Sector Investments:
£182 million for engineering skills, £182 million for defence industry talent, and £187 million for Techfirst digital skills. - Investment in Technical Excellence Colleges and short courses in advanced manufacturing, clean energy, digital, and defence.
These investments signal the government’s long-term priorities, but the immediate impact for most employers will come from the apprenticeship system and levy changes.
Why Corndel?
Over half a billion in client levy funds managed: We support hundreds of employers to maximise their investment, aligning their levy investment with strategic priorities to deliver impact for their organisation.
Double-Excellent UK Government DfE rating: The only large provider rated excellent by employers and individuals. Our commitment to quality and results is recognised by those who matter most – our clients and learners.
Strategic support, every step of the way:
- Annual levy strategy and forecasting sessions
- Quarterly Business Reviews (QBRs) to monitor performance and adapt to change
- Hands-on guidance to align levy spend with your organisation’s strategic goals
- Practical, up-to-date advice as the system evolves
- Access to roundtables and webinars on policy and the implications for employers
- Review your current levy usage and expiry dates: Don’t let funds go unused.
- Book a strategy session with Corndel: We’ll help you forecast, plan, and maximise your levy.
- Set up regular performance reviews: Stay ahead of policy changes and ensure your apprenticeship strategy delivers results.
- Stay informed: Corndel will keep you updated as further details emerge.
Looking Ahead
Further detail on these reforms, including the Youth Guarantee and Growth and Skills Levy, will follow. As the system continues to evolve, Corndel will ensure you have the insight and support you need to turn policy into practical, positive outcomes for your organisation.
