Sunesis Guide to 2025–26 DfE Funding Updates
Every academic year, the Department for Education (DfE) publishes updated regulations for apprenticeship delivery. For this cycle, the Apprenticeship Funding Rules for August 2025 to July 2026 were released in July 2025, covering a 12-month period that sets the framework for all apprenticeships starting from 1 August 2025.
The new funding rules released by the DfE span over 160 pages, packed with detailed guidance and policy updates. But you don’t need to read it all as we’ve already done the hard work for you.
In this article, Sunesis breaks down the key changes that matter most for training providers, employers, and apprentices across the UK, so you can quickly understand what’s new and how it affects your delivery.
1. Minimum Duration Cut to 8 Months
From 1 August 2025, apprenticeships must last a minimum of 8 months (previously 12 months). This new rule applies to all new starters from 1 August 2025.
Now why this rule matters, especially with the shorter duration. It’s important because providers now have more flexibility to design shorter and more focused programmes, while still staying compliant with the rules.
Key details:
- The minimum applies after recognising any prior learning.
- Apprentices must still be in training on the final date of this 8-month period.
- Apprentices can finish earlier than planned if both the 8-month minimum and the required off-the-job (OTJ) hours are completed.
- The minimum assumes apprentices work 30+ hours weekly, including OTJ time.
- Working fewer hours or having a zero-hours contract can no longer automatically extend programme duration.
2. Simplified Off-the-Job Training (OTJ) Rules
The next rule is related to OTJ. DfE has simplified off-the-job (OTJ) training rules by removing the link between OTJ hours and programme length. Each apprenticeship standard now has a set minimum number of OTJ hours, so providers no longer need to calculate them individually.
There’s no difference between full-time and part-time apprentices for OTJ delivery, and training can be arranged flexibly as long as the minimum hours and eight-month duration are met. Employers only need to provide a statement if actual hours fall below the agreed plan.
3. Reforms to Apprenticeship Assessment
Following reforms announced in February 2025, the DfE has updated the apprenticeship assessment model.
Key updates:
- “End-point assessment” (EPA) is being replaced by “apprenticeship assessment.”
- The assessment can occur at any stage once the apprentice is ready, rather than strictly at the end.
- “Gateway” is now known as “gateway to completion.”
- “Assessment organisation” replaces “end-point assessment organisation.”
- Assessment costs must not exceed 20 percent of the funding band maximum.
- A dual system will operate temporarily while new assessment plans are rewritten on a standard-by-standard basis from April 2025.
Why it matters:
This change makes assessments more adaptable and continuous, encouraging a stronger focus on progress rather than just final exams.
4. Policy on Redundancy and Programme Transfers
The new rules for redundancy and programme transfers now cover every apprentice, no matter when they started.
If someone loses their job but has already completed most of their training, more than six months and less than eight months in total, that time will still count toward the minimum eight-month requirement.
Employers using employee training platforms can now better manage these transitions by tracking individual apprentice progress and reassigning learners efficiently to new roles or departments.
Why it matters:
This provides more security for learners whose employment situations change mid-programme.
5. Active Learning and English/Maths
The DfE now distinguishes between two types of active learning:
- OTJT active learning (off-the-job training)
- EM active learning (English and maths)
Providers must meet the active learning rules for each separately when funding for English or maths applies.
6. Fair Pay and Employment Rule
What’s new:
- Employers must continue to pay apprentices a lawful wage throughout their training.
- The apprentice rate can only apply from the official apprenticeship start date.
- Apprentices aged 19 or over who complete their first year must be paid at least the national minimum wage for their age group.
- Zero-hours contracts are permitted if all funding rules are met and working hours are realistic.
There is also flexibility for the prisoner apprentices programs. As they can now complete their assessment before release if their release date is within two years. This change expands access and progression for offenders under training.
7. Change of Circumstance Rules
Providers and employers must update or recreate agreements when changes occur, including:
- Programme duration
- Employer or provider changes
- Price or eligibility updates
- Working patterns or contracts
A new clarification also directs providers to offer career advice and guidance (IAG) if a 16–17-year-old apprentice is at risk of becoming NEET (not in education, employment or training)
8. Governance and Compliance
Lastly, the Education and Skills Funding Agency (ESFA) has been integrated into the Department for Education (DfE). Also, all providers and employers must comply with DfE’s funding agreements and data-reporting requirements in the Individualised Learner Record (ILR). And DfE reserves the right to recover funds if any breaches occur.
How Sunesis Is Adapting to the New Funding Rules
At Sunesis, the best learning management systems, we understand that every update from the Department for Education affects how providers plan, deliver, and report apprenticeships. The new 2025–26 rules are no exception, and our team has been carefully reviewing each change to ensure our apprenticeship management system stays fully aligned and easy to use.
Rather than just meeting compliance requirements, we aim to make them simpler for you to follow. As the new eight-month minimum duration, updated OTJ hour structure, and assessment model come into effect, Sunesis is integrating these updates into its workflows and reporting tools through advanced training management software that supports both providers and employers.
With accurate tracking through our apprenticeships data management system, Sunesis ensures every learner journey meets DfE requirements without extra manual work. Our apprenticeship management Software helps you automate compliance, scheduling, and reporting, so your teams can focus more on learner success and less on admin.
In Summary
The 2025–26 Apprenticeship Funding Rules represent one of the biggest simplifications in recent years.
Key changes include:
- Minimum programme length now 8 months
- Clear, published OTJ hour requirements per standard
- Simplified part-time and zero-hours flexibility
- Reformed assessment structure replacing EPA
- Continued emphasis on lawful pay and learner protection
These updates give training providers greater flexibility, while keeping apprenticeships optimized, auditable, and aligned with modern workforce needs.