The Autumn 2025 Budget has introduced significant reforms to the UK apprenticeship system, aimed at reshaping how employers fund and support apprenticeships. These changes will take effect from August 2026, giving organisations time to prepare for the transition.
Apprenticeship Minimum Wage Increase
From April 2026, the apprenticeship minimum wage will rise from £7.55 to £8.00 per hour. For a full-time apprentice working 37.5 hours per week, the impact is clear:
This represents an annual increase of £877, a meaningful uplift for apprentices and a consideration for employers budgeting wages.
Employers will continue to benefit from no National Insurance contributions for apprentices:
This applies not only to new hires but also to existing employees undertaking apprenticeships as part of upskilling initiatives.
The Autumn 2025 Budget signals a clear shift towards shared responsibility in apprenticeship funding. While levy payers face tighter rules and higher contributions, small businesses gain broader support for younger apprentices. Combined with wage increases and NI relief, these reforms aim to balance financial sustainability with opportunities for learners and employers alike.
If you would like further advice on the Apprenticeship Funding changes, one of our apprenticeship advisors will be more than happy to assist. Please fill out a contact form on our ‘Contact us‘ page.
I have loved every part of my Marketing apprenticeship with Velocity Academy. Paired with hands on experience at JCB, a leading construction and agricultural equipment manufacture and the outmatched guidance from the Velocity team, I achieved a distinction for this course.
We have chosen to continue, and expand, our partnership with Velocity Academy due to outstanding working relationship we’ve built together. From the very beginning, Velocity have shown exceptional flexibility in accommodating our evolving requirements, often going above and beyond to tailor their delivery to our operational needs, always putting the wellbeing of the learners first. Velocity Academy have delivered consistent quality in both teaching and customer services (namely Lee and Emma) making them a trusted partner in delivering apprenticeships to our employees.
My experience with Graham at Velocity Academy has been nothing short of exceptional. His professionalism, expertise, and commitment to finding the right apprentices have been very impressive.
Once the candidates were selected, the transition to getting them on board was remarkably quick and seamless. Graham efficiently handled all the necessary paperwork and administrative tasks, making the onboarding process hassle-free.
I would recommend their services to anyone in search of apprentices who will make a positive impact on their business. Our apprentices are excelling in their roles and continuously developing their skills.
Velocity Academy sourced a fantastic Apprentice Developer on our behalf and we couldn’t have been happier with the service. Regular check-ins, guidance and support from the start and genuine care were put into the recruitment process from Velocity, which meant they came up trumps with a cracking candidate. They have been outstanding. Thanks Velocity!
