The apprenticeship landscape is changing, bringing new opportunities for employers to think differently about how they recruit, develop and upskill their workforce. From changes to apprenticeship levy funding to the introduction of more flexible training options, there is a lot happening, and understandably, employers may be wondering what it all means for them.
For those of us working across the energy and utilities sector, these changes are particularly important. We know the scale of the skills challenge facing the sector and the need to attract new people while continuing to develop the existing workforce. The apprenticeship reforms could give employers more flexibility to do both, but making the most of the changes will require some forward planning.
Less Time to Use Levy Funds
One of the biggest changes employers need to be aware of is the amount of time available to use apprenticeship levy funds. From August 2026, new levy funds expire after 12 months rather than 24 months if they are not used, before returning to the Treasury.
So, what does that mean in practice? Employers will need to think further ahead about how they intend to use their funding. Rather than waiting until there is an immediate training or recruitment requirement, now is a good time to look at levy balances alongside wider workforce plans. What skills will your organisation need over the next few years? Where are the gaps within your existing workforce? Could levy funding help you recruit new talent or develop the people you already have?
These are conversations worth having sooner rather than later. With a shorter window in which to use levy funds, having a clear plan could help employers make better use of the funding available to them.
More Flexibility Through the Growth and Skills Levy
The reforms are also changing what levy funding can support. Through the Growth and Skills Levy, funding will extend beyond traditional full apprenticeship programmes to include options such as Foundation Apprenticeships and Apprenticeship Units.
This is an important shift because we know that employers do not all have the same skills needs. In some cases, a full apprenticeship will absolutely be the right route. In others, an organisation may need to develop a particular technical skill within its workforce without requiring someone to undertake an entire apprenticeship programme.
Apprenticeship Units could help provide that flexibility by focusing training and assessment on specific skills drawn from occupational standards. For employers, this creates another option when considering how best to address skills gaps and develop their workforce.
One example is the Solar PV Installation and Maintenance Apprenticeship Unit, which will be funded at £950. We are developing an assessment for this Apprenticeship Unit, helping employers and training providers access an assessment solution that supports this new approach to skills development.
Creating New Routes Into the Sector
Foundation Apprenticeships are another important part of the reforms. Designed to provide young people with an entry point into key occupations, they combine employment with structured training and give individuals the opportunity to develop the skills and experience they need to progress.
For our sector, creating accessible routes into employment matters. The energy and utilities workforce is changing, and employers need to think not only about filling vacancies today but also about where the next generation of skilled workers will come from.
That means giving people opportunities to enter the sector, develop relevant skills and see a clear path towards a long-term career. Foundation Apprenticeships, alongside existing apprenticeship routes and the introduction of Apprenticeship Units, could give employers a broader range of options for building that talent pipeline.
What Should Employers Be Thinking About Now?
Although apprenticeship reform is continuing to develop, employers can start preparing now. We would encourage organisations to look at their current levy balance, understand when their funding is due to expire and consider how apprenticeships fit into their wider workforce and skills plans.
It is also worth looking beyond immediate vacancies. Where could existing employees benefit from additional training? Are there emerging technologies or changing ways of working that will require new skills? Could a full apprenticeship support that development, or could a more focused Apprenticeship Unit be a better fit?
Ultimately, greater flexibility creates more choice, but it also makes understanding those choices increasingly important. At Energy & Environment Awards, we are continuing to respond to changes across the apprenticeship and skills landscape by developing assessment solutions that reflect the needs of employers and the wider energy and utilities sector.
As the reforms continue to take shape, we will keep supporting employers and training providers to understand what the changes mean and how new routes can help develop the skilled workforce our sector needs.
Want to know more? Contact our team today.
