How the 2026 Apprenticeship Funding Rules Will Impact Construction Workforce Planning 

The UK Government has announced a significant restructuring of apprenticeship funding in England. From January 2026, most Level 7 apprenticeship routes will no longer be publicly funded. Instead, investment will be redirected towards training individuals aged 16 to 21 in priority sectors such as construction. 

This policy shift forms part of a broader skills strategy designed to address workforce shortages and to create a future-ready workforce in industries with persistent labour gaps. For construction businesses, these reforms present both risks and opportunities that demand strategic planning. 

Atkins Search Recruitment explores what this means for employers and how firms can futureproof their hiring strategies to remain competitive in a changing labour market. 

Key Apprenticeship Funding Rules Changes Announced by Government 

The Department for Education has outlined the following core reforms: 

• Public funding for most Level 7 apprenticeships will end in January 2026 

• Funding will focus on new Level 2 foundation apprenticeships targeted at 16 to 21-year-olds 

• Employers wishing to train apprentices over the age of 21 at Level 7 will be required to self-fund 

• A £3 billion apprenticeship budget will be allocated for 2025 to 2026, including £100 million for construction-specific Skills Bootcamps 

• £14 million in adult skills funding will be devolved to regional mayors to support up to 5,000 additional learners in construction 

• Employers who support and retain foundation apprentices could receive up to £2,000 per learner in incentive payments 

These changes coincide with a 32 percent increase in the Immigration Skills Charge, signalling a strong government push to reduce reliance on overseas labour and invest in the domestic workforce. 

Why Apprenticeship Funding Rules Matters to the Construction Sector 

The construction industry has long faced systemic skills shortages across both trade and professional roles. The withdrawal of funding for Level 7 apprenticeships could exacerbate this issue in senior, technical, and professional areas, particularly for roles such as chartered town planners and architects. 

Although the reforms are designed to increase the number of young entrants into the workforce, they present several challenges for employers. Training responsibility will shift further onto businesses, requiring greater investment in early-career development. Simultaneously, firms must now consider how to upskill and retain experienced staff without access to funded Level 7 qualifications. 

The overall objective is to rebalance apprenticeship funding towards high-impact, entry-level roles, but this could create a skills vacuum at the mid to senior level unless employers act early to address the gap. 

Strategic Analysis: Risks and Opportunities for Employers 

Construction businesses need to approach these changes strategically. Here is how the reforms may affect different areas of the workforce. 

1. Entry-Level Hiring 

The introduction of Level 2 foundation apprenticeships will increase access to construction careers for 16 to 21-year-olds. These new pathways will likely become a core part of how talent is introduced into the industry. 

Opportunity: Employers can build long-term workforce pipelines by engaging early with school leavers and providing structured development routes. 

Risk: Without adequate internal infrastructure, young apprentices may lack sufficient support, leading to poor retention rates and reduced return on investment. 

Atkins Search acts as an efficiency booster, handling the initial steps of the onboarding process, checking in with our candidates up to a year after placement. We provide support throughout their first year (and longer if needed) to ensure all candidates remain culturally fit for your organisations and feel supported so your in-house team can concentrate on the technical and operational side of their role. 

2. Mid-Level and Technical Talent 

With less focus on Level 4 to Level 6 qualifications in the government announcement, mid-level pathways may become bottlenecks. Skills development between foundation-level and chartered status needs to be clearly mapped and internally supported by employers. 

Opportunity: Companies that create internal upskilling programmes will be better positioned to retain talent and reduce reliance on external hiring.  

Risk: Businesses that depend solely on funded training may experience a gap in technical capability and struggle to retain staff seeking professional progression. 

Atkins Search acts as a recruitment partner to help construction firms implement upskilling programmes to execute internal hiring efficiently and effectively. We provide strategic recruitment insight to improve engagement and productivity, leading to higher retention rates to reduce risks of losing key employees.  

3. Senior and Chartered Roles 

The removal of public funding for Level 7 apprenticeships for those over 21 could significantly reduce the number of new professionals entering critical areas of construction, including planning, engineering and architecture. 

Opportunity: Firms that invest in selective sponsorship or alternative development pathways will differentiate themselves in a competitive recruitment market. 

Risk: A reduced flow of qualified professionals into senior roles could increase salary inflation, delay project delivery, and drive further reliance on short-term or contract-based staffing solutions. 

At Atkins Search, we remain your partner throughout any turbulent changes to balance both client and candidate expectations, (e.g. salary and project timelines) to ensure smooth operations and satisfaction for both parties.  

How Atkins Search Recruitment Supports Employers 

Atkins Search Recruitment partners with employers to help them adapt to workforce reforms and changing training landscapes. Our services provide: 

• Advice on how to align hiring strategies with the new apprenticeship framework 

• Access to qualified candidates across technical, commercial, and site-based roles 

• Support in building talent pipelines for early-career professionals 

• Strategic recruitment planning to reduce reliance on short-term hiring 

• We work with construction businesses to shape teams for long-term capability and resilience. 

Atkins Search Recruitment is working with construction firms across the UK to align hiring with future skills planning. If your business needs advice on how to respond to these reforms, contact our team for a confidential consultation. 

Contact us 

Telephone: 0115 671 6334 

Email address: hello@atkinssearch.co.uk 

Explore our current opportunities 

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Frequently Asked Questions 

What are Level 7 apprenticeships and why are they important? 

Level 7 apprenticeships are master’s level qualifications used to train senior professionals such as architects, planners and project managers. They are essential for progressing talent into leadership roles in the construction sector. 

When will funding for Level 7 apprenticeships end? 

From January 2026, most Level 7 apprenticeships will no longer be eligible for public funding, except in specific circumstances for learners aged 16 to 21. 

What funding is available for construction training? 

The government has announced £100 million specifically for construction Skills Bootcamps, alongside new funding for Level 2 foundation apprenticeships and devolved adult skills investment. 

What can employers do to adapt to these changes? 

Employers should begin preparing now by engaging with young talent, evaluating internal development routes, and working with recruitment partners to ensure they are building future-ready teams. 

Can employers still train older staff at Level 7? 

Yes, but they will need to self-fund this training. It is important for businesses to plan budgets and succession strategies accordingly. 

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