From August 2025, the Department for Education (DfE) is making some important updates to apprenticeship funding rules in England, and if you’re a current or future apprentice, a nursery employer, or supporting a team of learners, it’s worth knowing what’s changing. 

At Shaping Lives, we’re always looking ahead so we can give our learners and employer partners the very best experience. Here’s a quick, clear breakdown of what’s new, what it means for you, and how we’re preparing for the changes. 

 

Shorter apprenticeships, clearer training hours 

What’s changing: 

  • Apprenticeships can now be completed in as little as 8 months. 
  • Off-the-job (OTJ) training will now have a fixed minimum of 187 hours, no more percentage calculations. 
  • The old 20% rule is being replaced with standard-specific hour requirements published by the DfE. 
Why it matters: 
  • Learners who finish early might miss out on some incentives, like the 16–18 bursary or care leaver support, which kick in at 300 or 365 days. 
  • Even if learners have past experience (known as RPL), they still need to meet the minimum 8 months and 187 OTJ hours. 

What this means for you:
These changes make things simpler and more flexible, but they also mean we all need to plan carefully to make sure funding and support are protected. 

 

Good news for part-time learners 

One of the most exciting updates: if you’re working fewer than 30 hours a week, you’ll no longer have to stay on programme longer than your full-time peers. That’s a big step forward for fairness and accessibility. 

What we’re doing: 

  • Employers will now confirm that training hours are realistic. 
  • We’re adjusting our programme structures across Shaping Lives to reflect the change. 

 

More flexibility with Functional Skills (For Learners 19+) 

New rules mean: 

  • Learners aged 19+ can now choose to opt in or out of Functional Skills when they enrol. 
  • Employers will make the final call, but if learners opt in, they’ll need to complete the learning and sit the tests (a pass isn’t needed) to finish their apprenticeship. 

We’ll still use tools like the BKSB assessment to understand each learner’s starting point and help build a tailored learning journey, because one size never fits all. 

 

New support for young apprentices at risk 

For learners aged 16–17, we now have a legal duty to offer targeted support if they’re at risk of becoming NEET (Not in Education, Employment or Training). We’ll also need to notify the local authority if this happens. 

Our team is already working on new processes and sharing best practice to make sure every young person gets the guidance and help they need. 

 

Other key updates you should know about 
  • Apprenticeship agreements: If a learner goes past their planned end date, their agreement must be extended. 
  • Residency and immigration: 
  • EU pre-settled status will remain valid (as long as residency rules are followed). 
  • Asylum seekers can only take part in specific circumstances. 
  • Level 7 apprenticeships: From January 2026, these will be funded only for 16–21 year olds, or up to 25 if they have an EHCP. 
  • Care leaver bursaries: These are now confirmed to be tax-free and won’t affect Universal Credit. 
  • Terminology: Any reference to the ESFA will now simply be the Department for Education (DfE). 

 

We’re getting ready so you’re always supported 

These changes are designed to offer more flexibility and clarity, as well as new responsibilities. We’re already updating our systems, training our teams, and making sure we’re ready to support every learner and nursery.

We’ll share more guidance before August 2025. If you have questions, reach out to your line manager or get in touch with our compliance team. 

Together, we’ll keep shaping brighter futures, no matter how the landscape changes. 

 

For more information about apprenticeships in your nursery, visit our other blog: https://shapinglives.co.uk/strengthen-your-nursery-team-with-apprenticeships/