Apprenticeships in 2026: what recruiters should be thinking about

Apprenticeships are entering their most significant period of reform since the introduction of the levy in 2017. But beyond the headlines, what are the changes that could genuinely impact apprenticeship recruiters?

Drawing on insights from Luminate and the Institute of Student Employers (ISE), we explore what's shifting and how employers can respond.

(Need support with your apprenticeship recruitment? Get in touch.)

Apprenticeship numbers and early careers insights

There were 353,500 apprenticeship starts in England in 2024/25, with numbers rising gradually following the pandemic.

However, starts rarely move in a straight line and tend to change in response to policy changes and wider economic pressures. As reforms take effect, employers should expect further shifts.

At the same time, apprenticeships are becoming more important to early careers hiring:

• ISE data shows an 8% increase in apprenticeship hiring among its members.
• Among employers recruiting both graduates and apprentices, the ratio has shifted from 2.3 graduates per apprentice to 1.8.
• Interest is also growing. In our Early Careers Survey, the proportion of respondents saying they would like to do an apprenticeship went from 8% to 10%. This increases to 14% if we just go by school and college students.
• Finally, HESA Graduate Outcomes data shows that 91% of graduates working in apprenticeships feel their current work aligns with their future career plans, and 93% find it meaningful, showing the value of apprenticeship roles.

A changing outlook: from employer-led to priority-led

Apprenticeships are no longer shaped by broad employer demand, with policy now focusing on:

• Young people (those under 25)
• SMEs
• Regional needs
• Skills shortages.

This means employers whose programmes align with these priorities are more likely to get support, while others may face tighter funding conditions and scrutiny.

Funding is becoming more targeted

Key changes this year include:

• Funding for most Level 7 apprenticeships will only be available to those aged 21 and under.
• The 10% levy top-up will be removed.
• Levy funds will expire after 12 months instead of 24.
• Government co-investment will fall from 95% to 75% once levy funds are used.
• SMEs will receive fully funded training for 16-24 years old.

The changing shape of apprenticeships

Recent trends show:

• Higher level apprenticeships (Levels 4-7) now account for 40% of starts, up from 13% in 2017/18.
• Level 2 apprenticeships have fallen to 19%.
• Over half of all starts in 2024/25 were in: business, administration and law (31.8%) and health, public services and care (21.2%).
• Engineering, manufacturing and digital technology were also popular.

Participation trends also show meaningful shifts:

• Women account for 52.5% of starts, though sector imbalances remain.
• Minority ethnic participation has increased to 19.2%.
• 16.1% of apprentices declare a learning difficulty or disability.

Advice for recruiters

Before making changes to your recruitment strategy, it's important to understand how your current apprenticeship programmes fit into the new reforms. This will help you identify risks, opportunities and where to focus first.

• Look at what's working well and where there may be gaps, particularly in relation to the new priorities.
• Review how your programmes are funded and whether any planned changes could affect future recruitment.
• Check in with relevant employees to make sure they understand the apprenticeship changes and find out what support they need.

Aligning your programmes with government priorities

Young people (under 25)

With funding and policy increasingly focused on younger learners, consider whether your current offer provides enough accessible entry points to this audience. This could include:

• Expanding opportunities at different levels to fit this age group.
• Reviewing your wider recruitment strategy to ensure it balances immediate hiring needs with longer-term brand building with younger audiences.
• Making progression routes clearer, so candidates can see how they will develop over time.
• Reviewing the variety of occupations you offer to appeal to this audience, particularly where this could also support skills shortages or regional priorities.

How to reach this group:

• Build early brand awareness with schools and colleges. This benefits both immediate roles, as well as builds a long-term audience for higher level roles.
• Offer insight days, workshops and employer talks to create opportunities for meaningful interactions.
• Utilise current apprentices as ambassadors through case studies, social media takeovers and event involvement. Peer-to-peer content builds authenticity and buy-in.
• Engage parents and teachers, who can be key influencers (Here's a previous newsletter about engaging parents.)
• Dispel myths by providing clear information, myth-busting content and progression stories that can help build confidence in apprenticeship routes.

Regional needs

With regional growth a key area of the reforms, employers will benefit from reviewing whether their apprenticeship locations align with priority regions or are in areas experiencing skills shortages.

How to attract talent in priority regions:

• Clearly highlight location in job adverts and across marketing, so candidates know where they will be based and can find out more about the area.
• Content showing the working environment, local area and day-to-day experience can help candidates visualise themselves in the role.
• Travel support, relocation assistance or hybrid working options can make opportunities more accessible.
• Build local partnerships with local education providers to help strengthen your regional talent pipeline.
• Use data to help understand where the talent pools are – here's a useful article, but we can also help with this.

Skills shortages

Apprenticeships are increasingly expected to address skills gaps, with a particular focus in AI, digital and engineering to begin with.

Review whether your programmes reflect current and future sector needs. This may mean adapting existing pathways or introducing new roles.

How to attract candidates in priority skills areas:

• Clearly explain the technical and transferable skills apprentices will gain.
• Highlight long-term career prospects and progression in shortage sectors.
• Work with education providers to build interest in priority sectors.
• Provide learning opportunities to develop skills and future pipelines.
• Use our labour guide for tips on exploring skills shortages.

SMEs

SMEs are now a priority for funding. With this in mind, it is important for SMEs to think about how they can stand out amongst larger apprenticeship recruiters.

How SMEs can stand out:

• Be transparent about salary, progression, training, and benefits in job descriptions.
• Promote the advantages of working for an SME, such as the opportunity to work with senior staff, shorter recruiter windows and the opportunity to make more of a visible impact in a smaller organisation.
• Strengthen links with local education providers and local networks.
• Here's a useful guide for SMEs to showcase their strengths.

Participation trends

Although, diversity and inclusion isn't listed as one of the four formal priorities, the growth in participation from under-represented groups makes it an area employers should be thinking about, especially given the sector imbalances. Employers should ensure their programmes are accessible and inclusive. Consider:

• Reviewing marketing materials to ensure they reflect diverse apprentices and messaging is inclusive.
• Promoting support including mentoring, wellbeing initiatives, as well as networks within your organisation.
• Ensuring recruitment processes are clear and accessible.
• Sharing real-life stories that reflect different backgrounds.

The apprenticeship landscape is changing. Recruiters who adapt early will be in the best place to thrive. With this in mind, if you need support with your apprenticeship hiring strategy, reach out to our team today.

Further insights

• Apprenticeship trends in England
• How do apprenticeship students perform in the labour market?
• What does 2026 hold for apprenticeships?

Thanks for reading the latest newsletter. If you have any thoughts or feedback on future topics we should cover, please get in touch. You can find out more about what we do and advertising your opportunities on the Prospects website.

Written by

Matthew West

Marketing communications executive

Prospects at Jisc