Full funding for 16 to 24 year olds, and the new co-investment map
The single change most likely to alter a training budget this year.
Version 3 of the 2026/27 rules, published on 29 July 2026, set out a co-investment position that now turns on two things: whether you pay the levy, and how old the apprentice is at the start of their training.
If you do not pay the levy, government funds all training and assessment costs up to the funding band maximum for apprentices aged 16 to 24. For apprentices aged 25 and over, you co-invest at 5%.
If you do pay the levy and your account balance is exhausted, government funds all costs up to the band maximum for apprentices aged 16 to 24, and 75% for those aged 25 and over — leaving you co-investing at 25% for that group only.
What it changed from: co-investment was previously a single rate applied regardless of who the apprentice was, with full funding available only in much narrower circumstances.
What follows: this changes what a levy shortfall actually costs, sometimes dramatically, and it is worth remodelling your budget rather than assuming last year's figures hold. It also weakens the case for levy transfers as a way of supporting smaller employers with younger apprentices, since those employers can now access full funding directly.
One thing it is not: a reason to prefer younger candidates. Age is a protected characteristic under the Equality Act 2010 and selecting on it is unlawful, whatever the funding position. This is information for building and defending a budget, not for shaping a shortlist.