New rules, new opportunities: what the post-16 skills White Paper means for employers – and why action is needed now

By Jo Burgess
Director of Apprenticeships

The Government’s Post-16 Education and Skills White Paper introduces some of the most significant changes to apprenticeships and levy-funded training since the system’s inception. With the upcoming end of level 7 apprenticeship funding, the introduction of a new 12-month levy expiry window and the launch of apprenticeship units, employers are entering a time of rapid transition and unique opportunity.

A shift towards agility: what the reform means for employers As businesses increasingly require skills to be delivered with greater speed, flexibility and direct impact, these reforms represent a decisive move toward a more agile and modular skills ecosystem. Employers are now prompted to reconsider how they deploy levy funds, design talent pathways and approach strategic workforce development.

Teesside University stands ready to support employers as they adapt to these changes and maximise the opportunities presented by this evolving landscape.

A more flexible future: apprenticeship units coming in April 2026 The White Paper confirms that apprenticeship units will be introduced from April 2026. These will provide fully fundable, rapid and targeted skills development. These units will operate alongside – but remain distinct from – the Lifelong Learning Entitlement (launching in 2027).

These are short, structured learning blocks derived from existing apprenticeship standards, designed to be completed within one week to several months. The new units will enable employers to:

• quickly build capability in emerging areas such as AI and digital
• support critical sectors like engineering and construction
• direct levy spending towards precise skills gaps
• integrate training closely with live business priorities.

This reform marks a dynamic evolution in the skills landscape and aligns with employer demand for shorter, more responsive development opportunities. With accolades such as TEF Triple Gold, Ofsted Outstanding and Apprenticeship Provider and Register accredited status, Teesside University is well-positioned to apply for delivery of these new apprenticeship units under the forthcoming Growth and Skills Levy.

Key changes on the horizon

• End of level 7 apprenticeship funding - a significant immediate change for businesses is the withdrawal of standard levy funding for level 7 apprenticeships, effective from 31 December 2025. This impacts leadership, specialist and professional development pipelines that have previously depended on these programmes. Employers should now prioritise level 4-6 apprenticeships as the foundation of future workforce development strategies.
• New levy challenge - funds expire in 12 months. Under the revised system, levy funds will now expire after just 12 months, rather than the previous 24 months. As a result, employers must utilise levy funds at twice the previous rate; focus on shorter, modular or mid-level apprenticeships; and actively plan workforce development to prevent the waste of resources.

Teesside University is already working with employers to redesign skills pathways, align levy spend to priority roles and prepare for the introduction of apprenticeship units. By engaging now, businesses can future-proof their workforce, maximise return on levy investment and stay ahead in an increasingly competitive skills landscape.

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