Funding Cuts, Fresh Starts: Rethinking Apprenticeships Post-Level 7

In this article:  Discover what the changes to level 7 funding mean for training providers and how they can adapt to the new regulations.  |  5 minute read.

In January 2026, the apprenticeship landscape in England will undergo a significant shift. From that point forward, the majority of Level 7 apprenticeships (those at Master’s degree level) will no longer receive public funding.

It’s a change that’s causing understandable concern across the sector. For providers, employers, and adult learners, the announcement has raised difficult questions about viability, accessibility, and the future of high-level skills development.

At Bud Systems, we’ve been working closely with training providers and industry stakeholders to understand the potential impacts of the changes and more importantly, how the sector can respond constructively.

While the removal of funding for most adult learners will undoubtedly reduce demand for Level 7 provision, it also presents an opportunity to take stock, refocus, and innovate.

The Level 7 Funding Landscape

• Public funding for Level 7 apprenticeships will end for those aged 22+ from 1 January 2026, with limited exceptions (care leavers / EHCP up to 25).

• This affects nearly 90% of current Level 7 starts, which equates to around 24,000 learners, who will either need to start their programme before January 2026 or lose funding altogether.

• The budget reallocation aims to emphasise earlier-level training, such as foundation apprenticeships, T Levels, and bootcamps, fuelled by a “growth and skills levy” approach.

Making the most of 2025

With funding available until the end of this calendar year, providers delivering Level 7 programmes should be actively engaging employers now.

Many university-led programmes have a September intake, meaning the window to act is short. Providers should work closely with employers to identify staff who may be eligible and interested, streamline enrolment, and support learners to begin before the January 2026 cut-off.

This isn’t just about maximising starts, it’s about making sure those who would benefit from Level 7 training don’t miss out due to timing or lack of awareness.

Looking ahead

When funding disappears, Level 7 apprenticeships won’t vanish completely, but without public support, most employers will need to fully self-fund any future delivery. That will naturally reduce demand and shift focus elsewhere.

At Bud, we work closely with a wide range of training providers, employers, and funding rule experts, including Rupert Crossland of Professional Assessment Ltd and are able draw on that collective insight, along with our own experience, to suggest where providers might look to adapt and refocus their offer in the months ahead.

Rethinking Level 6 Offerings

With Level 6 apprenticeships remaining fully funded, this is the most obvious alternative. Programmes like the Leadership and Management Professional or Improvement Leader can offer meaningful career development opportunities for aspiring leaders, while still being accessible through the levy or co-investment model.

Of course, they’re not a like-for-like replacement for an MBA or Master’s degree, but with careful programme design and strong employer engagement, Level 6 can effectively tick many of the same boxes.

Embracing Modular, Stackable Learning

As policy and funding continue to shift, there’s a growing emphasis on shorter, flexible, skills-based training. Foundation apprenticeships, bootcamps, and modular learning are all gaining traction, and for good reason.

For providers, this means rethinking how programmes are structured and delivered - moving towards more modular, flexible learning journeys that allow learners to build knowledge and skills progressively over time. This approach can support greater personalisation and better alignment with both learner needs and evolving industry demands.

Preparing for Commercial Models

In cases where there is still an appetite for Level 7 provision, some employers may be willing to fund it directly. But this model requires a different approach; one that demonstrates clear return on investment, with tangible business impact and high learner satisfaction.

Technology plays a critical role here. From onboarding to progress tracking to impact reporting, providers need systems that support commercial delivery and allow them to operate efficiently at scale.

 “This year’s changes probably represent the most significant funding rule updates since the 2017 reforms,” says Matt Wood, Senior Product Owner at Bud.

A Sector in Transition

We know that this funding change won’t be welcome news for many. It reduces access for adult learners, narrows progression pathways, and forces providers to adapt quickly in a challenging landscape.

But it also creates space for innovation. It pushes us to ask difficult but necessary questions: Are we doing enough to support progression from Level 3 to 6? Can we offer shorter, more focused learning that meets employer needs? Are our systems set up to deliver flexible, data-rich training that’s fit for the future?

At Bud Systems, we believe the providers who thrive in this new environment will be those who are agile, responsive, and relentlessly learner-focused.

How can Bud help you?

We’re here to support you through this transition. Whether you’re reshaping your Level 6 curriculum, planning for commercial delivery, or rethinking how modular training fits into your offer, Bud provides the tools and insights you need to deliver high-quality, future-proof training.

Change is coming, but with the right strategy and infrastructure, it doesn’t have to be a setback. In fact, it might just be the start of something better.

To learn more about how Bud is evolving in response to the latest funding rule changes, join us for a live webinar with Senior Product Owner Matt Wood on 30th July 2025 at 10:00 where he’ll be talking about:

• The introduction of an academic year selection in Bud's application process, making it easier to handle different compliance rules for different academic years.

• Reducing the minimum duration validation to 8 months for 25/26 learners.

• Implementing the new OTJ requirements for 25/26 learners.

• Managing standalone English & Maths with specific activity types and a new section on the Training Plan.

• Providing a robust way to capture a 19+ learner's decision to either opt in or out of English & Maths.