By AAT Comment Employer newsletterWhat might funding changes mean for pathways to careers in finance?30 May 2025 The government has announced a package of apprenticeships and skills policy reforms.On Tuesday 27 May 2025, the government announced a series of changes to apprenticeships and skills policy.The key measuresThese measures will help drive forward the government’s priorities of tackling skills shortages and getting more young people into work and training. Here are the announcements.Gain freedom and flexibility from day oneThe accountant start up programme breaks down the essentials into simple, practical manageable steps so you can focus on what really matters – building a business that works for you.Start building your businessApprenticeshipsTrailed extensively in trade press and by the Skills Minister, the annual apprenticeship budget is confirmed to increase 13%, up from £2.73bn in 2024-25 to £3.075bn in 2025-26.From January 2026, Levy funding for Level 7 apprenticeships, equivalent to a Master’s degree, will only be available to 16 – 21-year-olds. The most popular L7 apprenticeship in terms of number of starts in 2023-24 was the accountancy or tax professional apprenticeship.Wider skills reformsThe government also wants to encourage businesses to invest in training domestic workers rather than bringing in foreign workers. As a result, it’s increasing the Immigration Skills Charge – the fee UK employers must pay when sponsoring skilled workers from overseas under certain visa routes – by 32%.It has earmarked £132mn for skills bootcamps “across a range of priority sectors” (yet to be confirmed) for 30,000 learners in 2025-26. Plus, it has already announced £100mn to extend courses in the construction sector. Skills bootcamps are free 16-week intensive training programmes focused on specific industry-aligned skills.AAT’s responseAAT CEO Sarah Beale FMAAT said “The government has a pivotal role in ensuring apprenticeships are desirable and valuable to employers and learners alike, and that the skills landscape supports the UK’s much-needed growth ambitions and tackles youth unemployment.“Today’s announcement demonstrates that commitment, and we’re pleased to see that backed by an increase in overall apprenticeship funding.“We need to ensure that people are aware that Levels 2-4 can provide both the entry route to, and the end destination for, fulfilling and successful careers for many. In our world of accountancy, a Level 4 qualification is an end destination in itself, creating the next generation of accountants, bookkeepers, and entrepreneurs.”You can read Sarah Beale’s full response on LinkedIn.Social mobility can help fill the skills gapSkills England has identified accountants and finance technicians as being ‘in critical demand’ (PDF). Improving access to careers in accountancy is an economic necessity.In part, the government has rightly recognised this as it seeks to break down the barriers to opportunity, with a renewed focus on engaging the UK’s NEET population (young people not in education, employment or training) now standing at 900,000 16 – 24-year-olds.Looking forwardAs is often the case with government announcements, a lot of the detail is yet to be published. We’ll be working with the Department for Education (DfE) and Skills England to seek further detail on this package of reforms, as well as announcements in June’s Spending Review, changes to End-Point Assessment (EPA) and the introduction of the Growth & Skills Levy.A key priority for AAT will be working with the government to get greater clarity and streamline pathways into the profession. These next few months will be crucial in shaping long-term direction for skills funding, strategy, and policy. We have a window of opportunity to drive forward progress on social mobility and build a culture in which all routes, whether academic or vocational, are equally valued.Key dates11 June – Spending Review sets the direction of skills funding for the next 3-4 years.23 June – Industrial Strategy update outlines the Government’s economic plan for growth in eight priority sectors.Summer 2025 – Further detail on the introduction of the ‘Growth & Skills Levy’, which will replace the Apprenticeship LevyAugust 2025 – End-point assessment changes come into effectJanuary 2025 – Removal of Level 7 Masters-level apprenticeships from being Levy-funded, except for 16 – 21-year-oldsGain freedom and flexibility from day oneThe accountant start up programme breaks down the essentials into simple, practical manageable steps so you can focus on what really matters – building a business that works for you.Start building your business AAT Comment offers news and opinion on the world of business and finance from the Association of Accounting Technicians.