What the Autumn Budget means for NHS apprenticeships
Employers need to prepare for the announced reforms, including levy changes, wage increases, and new apprenticeship models.
The recent Autumn Budget includes some implications for apprenticeships that will affect NHS employers.
Apprenticeship reforms
- Levy expiry shortened: unused levy funds will now expire after 12 months instead of 24.
- Government top-up removed: the ten per cent top-up to levy accounts will end.
- Higher co-investment: once levy funds are exhausted, employers will pay 25 per cent of training costs (up from 5 percent), with government covering 75 per cent.
- Changes to pay: apprentice minimum wage will increase six per cent to £8 per hour from April 2026.
- Removal of funding: funding for Level 7 apprenticeships will cease for new starters aged 22 and over from January 2026.
- New apprenticeship options: from April 2026, short courses and foundation apprenticeships will be introduced to offer more flexible training routes.
- Support for SMEs: as part of a £725 million skills investment, funded training and assessment costs will be available to small and medium-sized employers for apprentices under 25.
- Levy reforms: as previously announced the new Growth and Skills Levy has been introduced, replacing the current apprenticeship levy to provide greater flexibility.
The budget includes capital investment for NHS technology and new neighbourhood health centres. This investment in infrastructure could indirectly increase the need for skilled workers and apprenticeships in new roles relating to digital and diagnostic technology, aligned with the 10 Year Health Plan.
What this means for employers
- Review your current apprenticeship levy balance to avoid losing funds under the new 12-month expiry rule, and consider accelerating starts.
- Plan for higher costs by factoring in increased investment and wage rises in your workforce budgets.
- Communicate updates to managers and staff about new apprenticeship opportunities and pay changes.
- Review the standards for short-course apprenticeships.
- Engage early with providers to discuss how new apprenticeship models could support your workforce development plans.
Explore the headlines for healthcare leaders in the NHS Confederation summary of the Autumn Budget 2025.
