Important Changes to Apprenticeships: What Employers and Learners Need to Know

Written By Sam Coulstock

On 16 March 2026, the Government announced a significant package of reforms designed to expand opportunities for young people, streamline the apprenticeship system, and ensure funding and training better align with national skills priorities. At Umbrella Training, we’re committed to helping our partners understand what these changes mean for them, especially across the hospitality, travel, and leisure sectors.

Below is a clear breakdown of the key updates and how they may impact your teams and future workforce planning.

Expansion of the Youth Guarantee and Growth and Skills Levy

The Government has committed £900 million over the next three years to expand the Youth Guarantee. This will support:

  • An extension of the Jobs Guarantee to include 22-24 year olds

  • Hiring incentives for employers recruiting young people on Universal Credit who are at risk of long-term unemployment

Alongside this, reforms to the Growth and Skills Levy will prioritise young apprentices. This includes:

  • Additional incentives for non-levy paying employers hiring 16-24 year old apprentices

  • New apprenticeship units for rapid upskilling in priority sectors

  • Changes to ensure funding is targeted where it’s needed most

Foundation Apprenticeships: Expansion Into Hospitality

From April 2026, foundation apprenticeships will be expanded into the hospitality and retail sectors. This is a welcome development for industries that employ large numbers of young people and offer strong progression routes.

This expansion opens new entry pathways for young people and supports employers seeking to nurture talent from the ground up.

New Level 2 Administrative Assistant Apprenticeship

A new Level 2 Administrative Assistant apprenticeship aimed at 16-24 year olds will launch from 1 August 2026.
This programme is designed to support young people in building foundational workplace skills, offering employers a new option for junior support roles.

Introducing Apprenticeship Units

From April 2026, the Government will launch the first set of apprenticeship units. These short, flexible training units focus on priority skills gaps and enable employers to quickly upskill existing staff.

The first seven apprenticeship units will cover:

  • AI leadership – developing AI strategy

  • Electric vehicle charging point installation and maintenance

  • Electrical fitting and assembly

  • Mechanical fitting and assembly

  • Permanent modular building assembly

  • Solar PV installation and maintenance

  • Mechanised welding

Training providers eligible to deliver these units will be contacted by 30 March 2026.

Streamlining Apprenticeship Standards

To simplify the apprenticeship landscape, the Government will withdraw funding from 16 apprenticeship standards from September 2026.

This includes:

Leadership and management standards to be withdrawn

  • Chartered Manager (Level 6)

  • Operations Manager (Level 5)

  • Team Leader (Level 3)

These have grown significantly but are mostly used for CPD by staff aged 25+, rather than supporting young people entering the workforce.

An additional 13 standards will also lose funding, including:

  • Cleaning Hygiene Operative (Level 2)

  • Coaching Professional (Level 5)

  • Facilities Management Supervisor (Level 3)

  • Lead Practitioner in Adult Care (Level 4)

  • Outdoor Learning Specialist (Level 5)

  • Professional Security Operative (Level 2)

  • ...and others

Training providers delivering these standards will receive notice by 18 March 2026 with transition arrangements.

New Employer Incentives for Non-levy Payers

From October 2026, non-levy paying employers will receive up to £2,000 for hiring 16-24 year old apprentices as new employees.

Key details:

  • Applies to apprentices joining from October 2026

  • Apprentice must have joined the employer within the last three months (from July 2026)

  • First payment is made after the apprentice completes 90 days on programme

This measure aims to reverse the decline in young apprenticeship starts and support small employers to invest in future talent.

Apprenticeship System Funding Changes

Several financial reforms will take effect from August 2026, including:

1. Expiry of Levy Funds Reduced to 12 Months

Levy funds entering accounts from 1 August 2026 will now expire after 12 months, rather than 24.

2. 10% Top-up Removed

From the same date, the 10% Government top-up on levy funds will end. Existing funds remain unchanged.

3. Co-investment Rate Adjustment

When levy funds run out:

  • Government will fund 75% of training

  • Employers will contribute 25%

(Existing apprentices will continue at the current 95%/5% split.)

What This Means for the Hospitality Sector

These changes highlight a renewed focus on young people, priority skills, and industry alignment. Hospitality employers should note:

  • Increased incentives for attracting young apprentices

  • New foundation apprenticeships supporting early career entry

  • A need to review any programmes affected by the funding withdrawals

  • Opportunities to use new apprenticeship units for targeted skills development

At Umbrella Training, we’ll continue to support you through the transition, offering guidance, programme adjustments, and strategic workforce planning advice.

Need Support Navigating These Changes?

Our team is here to help you understand how these reforms impact your apprenticeships, levy strategy, and workforce development.

Contact Umbrella Training if you’d like:

  • A review of your current apprenticeship portfolio

  • Advice on affected standards

  • Support planning for the new incentives

  • Guidance on incorporating foundation apprenticeships or apprenticeship units

Sam Coulstock
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