One of the most positive updates this year has been the increase in government funding for SMEs. Smaller, non‑levy paying businesses can now receive 100 per cent funding for apprentices aged 16–24. For small firms, which make up so much of the UK’s business sector, this is a major boost. Without considering other factors, it makes the investment in new talent more affordable.
Shorter minimum durations for learners with prior experience, and the removal of mandatory English and maths requirements for adult learners, have also been positive, making apprenticeships more flexible, more inclusive and better aligned with real workplace needs.
But not all changes have been positive. I’ve made no secret about my concerns over the future of apprenticeships, given the various policy and funding reforms announced last year. With a potential reduction and general confusion around the quality and rigour of assessments, we risk stepping back to the days before the Richard Review in 2012, when apprenticeships, and (unfairly) apprentices, were poorly perceived. And with the volume and speed of changes being demanded, we risk a loss of confidence to invest, from both employers and education institutions. This is compounded by other mis-aligned fiscal policies hitting employers. It is worrying to see this play out recently. Apprenticeship starts for entry level programmes are slowing more and more, and these once brought the biggest numbers into the system.
What AAT members think
The 2025 Autumn Budget delivered some welcome changes. But without a stronger long-term plan for apprenticeships, the UK risks missing the chance to develop the next wave of talent. Year after year, employers tell us that apprenticeships work. But what’s missing is a system that makes it easier and more affordable for employers to show commitment to their significant role.
That’s why in the year ahead, collaboration between government, professional bodies and employers will be essential. Our Filling the Gap report clearly showed that businesses want an apprenticeship system that is simpler to navigate, more flexible and better aligned with the way of all ages, start and grow their careers. Strengthening that system and ensuring it works for learners must remain a priority. And something that should be created together with those designing, implementing and assuring those programmes.
Skills England will be crucial in making all this work. Streamlined assessment plans, proportionate end‑point assessments, and clear, steady guidance would make the system far easier for employers and learners to navigate – but these changes must all be communicated clearly and with sufficient notice.
Apprenticeships create leaders, and SMEs are where it starts
If you want proof that apprenticeships work, just look at the people they produce. Our president, Lucy Cohen, began her journey as an AAT apprentice before co‑founding Mazuma, a multi‑million‑pound accountancy firm. Today, she represents members and SMEs across one of the UK’s largest professional bodies. Her story shows that apprenticeships aren’t a second choice, they’re a launchpad for impactful leaders, entrepreneurs, and well-rounded professionals.
AAT need to walk the walk too. This year we welcomed three new apprentices into our teams, and that’s in addition to the five who were already working through their apprenticeships with us. With apprentices now covering a variety of roles across our business, we not only feel the challenges of an employer, but we see exactly how they deliver value day to day. I’m looking forward to sitting down with them during National Apprenticeship Week, to highlight their role in our own business.
Policy needs to keep up with the future
National Apprenticeship Week is a chance to celebrate progress, but also to recognise what still needs to be done. For apprenticeships to reach their full potential, government, employers, and providers must work together to keep learner and employer outcomes front and centre. When that happens, apprenticeships become more than training programmes. They become a way to grow talent, strengthen businesses, and build the skilled workforce the UK needs now and for the future.
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