Recent apprenticeship funding and policy changes are prompting many employers to rethink how they recruit, train and develop future talent.
That was the focus of First Intuition’s recent employer webinar, Navigating Apprenticeship Funding Changes: Key Changes, Client Perspectives & Sector Guidance. The live session attracted a lot of interest, reflecting just how significant and wide-reaching these changes are for accountancy employers, training providers and awarding bodies alike.
Bringing together voices from First Intuition, the main accountancy awarding bodies (AAT, ACCA, CIMA, ICAEW and CIPFA), employers and UCAS, the session explored the latest funding reforms, what they mean in practice, and how organisations are starting to respond.
Below is a summary of the key topics discussed and a recording of the session.
A changing funding landscape
While there are clear challenges, the overall picture is not entirely negative. Apprenticeships remain a protected area of skills funding, and the Government’s focus on young people, lower-level training and occupationally specific standards aligns strongly with the structure of the accountancy profession.
Furthermore, the accountancy sits within Professional and Business Services, one of the Government’s priority growth sectors, and this should help keep the sector visible in future skills planning.
At the same time, however, any additional flexibility the sector wants from the apprenticeship system is likely to come with trade-offs elsewhere.
Level 7 changes are driving a shift in recruitment
The most significant issue is the age restriction on Level 7 apprenticeship funding, which now limits funding to those who are 21 and under at the start of the programme, with some exemptions for care leavers and learners with Education, Health and Care Plans.
This change is already reshaping thinking across the sector.
As a result, many employers are placing greater emphasis on school leavers and younger recruits, while developing commercial alternatives for older learners.
Several employers said they are:
- increasing school leaver recruitment
- making more use of Level 4 pathways
- exploring direct progression from Level 3 to Level 7 for high-performing school leavers
- using commercially funded programmes where learners no longer qualify for funding
Public sector employers in particular were highlighted as being significantly affected. CIPFA shared that only a small proportion of its learners had been 21 and under at the point of starting, meaning the change has a substantial impact on public sector finance training routes. Employers in this space are now split between maintaining recruitment, reducing intake, or holding back while they assess the longer-term implications.
Levy changes are adding further pressure
Alongside Level 7, employers are also preparing for wider levy and funding changes coming into effect from August 2026.
These include:
- the removal of the 10% levy top-up
- the reduction in levy fund expiry from 24 months to 12 months
- a rise in employer co-investment for levy-paying employers who have exhausted their levy funds, from 5% to 25%
For levy-paying employers, these changes are widely seen as a squeeze. Employers will need to plan more carefully, use levy funds faster, and manage training budgets more tightly.
However, it is more positive for non-levy employers, receiving greater funding support for younger apprentices and new incentives that may help smaller firms continue investing in early careers talent.
Multiple incentives can be stacked for the same learner, which may create useful opportunities for eligible employers recruiting younger apprentices.
School leavers are becoming even more important
A clear theme is the growing importance of school leaver recruitment.
Speakers from AAT, ACCA and ICAEW all highlighted increasing employer interest in building or expanding school leaver pipelines. For some firms, this is a direct response to the Level 7 age restriction. For others, it reflects a broader recognition that younger talent will need to play a bigger role in future workforce planning.
There is strong agreement that school leavers can succeed just as well as graduates, but they may need different support, more pastoral care and stronger development of employability and commercial skills alongside technical knowledge.
Several contributors also pointed out that the move towards school leavers is not a simple switch. It requires changes to recruitment strategy, manager readiness, pastoral support and internal programme design. Employers also warned that attracting school leavers is likely to become increasingly competitive.
Employers still need talent
Despite the changes, very few employers said they were reducing recruitment significantly.
Many said they were maintaining or even increasing recruitment despite the funding changes, because the long-term need for talent has not gone away.
The question is less whether they will keep investing, and more how they will structure that investment in a way that works for their organisation, their learners and the new funding environment.
As a result, some employers are creating a mix of pathways, combining apprenticeships, commercial routes and additional support, to make sure they can continue to bring in and develop the people they need.
Some are considering greater use of Level 4 apprenticeships, either as a destination in themselves or as part of a longer progression route. Others are exploring more direct progression from Level 3 to Level 7 for high-calibre school leavers. Many are also looking at commercial alternatives and programmes such as First Intuiton’s ExamPlus where learners are no longer eligible for full apprenticeship funding but still need structured support.
Schools and students are still largely unaware
A major concern is that many schools, universities and careers advisers are still unaware of the new Level 7 age cap.
Multiple attendees said that students and their families are often still being encouraged towards traditional university routes without any understanding of how those decisions could affect later eligibility for funded professional training. Several noted that schools had been unaware of the changes until employers or training providers raised them directly.
UCAS reinforced this point, explaining that students are increasingly interested in apprenticeships, including in accountancy and finance, but are often not aware of the implications of the policy changes. There was a strong call for clearer communication to schools, colleges, universities and undergraduates, so that advice reflects the current system rather than outdated assumptions.
What happens next?
The sector is still working through what these changes mean in practice.
Employers are at different stages, different parts of the market are being affected in different ways, and many organisations are still testing what their future model should look like.
But there were some clear takeaways:
- demand for accountancy talent remains strong
- apprenticeships are still central to the profession’s talent pipeline
- school leaver recruitment is likely to become even more important
- Level 4 routes may play a bigger role
- commercially funded alternatives will remain necessary
- clearer communication to students, schools and careers advisers is urgently needed
The discussion showed a sector that is adapting rather than retreating. Employers, awarding bodies and providers are actively working through the changes, sharing ideas and reshaping pathways to make sure talent can continue to enter and progress through the profession.