We recently joined the Department for Education’s Apprenticeship Service webinar to hear directly about the latest updates to the Growth and Skills Levy and the wider changes coming through the apprenticeship system.
There is a lot being introduced at once, and while some of it sits behind the scenes, there are a number of developments that will have a direct impact on housing organisations and how you approach workforce development over the coming months.
This article focuses on the areas most relevant in practice and where we are already seeing clear implications for housing employers.
A stronger focus on bringing young people into the sector
A consistent theme throughout the session was the renewed focus on 16 to 24 year olds and the role apprenticeships are expected to play in supporting more young people into work.
For housing organisations, this is particularly significant. Many providers are already managing the challenge of building sustainable pipelines into frontline roles, whether that is within neighbourhood teams, repairs, or customer-facing services. These are not always easy roles to step into without the right support, and they require a combination of technical understanding and confidence that develops over time.
At the same time, we know that many housing organisations are using apprenticeships to support existing staff to progress, whether that is moving into specialist roles or stepping into leadership positions. That remains a valuable and well-established use of apprenticeships across the sector.
What is changing is the emphasis. More funding and policy attention is being directed towards early careers and entry routes, which strengthens the case for bringing new people into the sector, while still sitting alongside the ongoing need to invest in your existing workforce.
A £2,000 incentive for recruiting young apprentices
From October, non-levy paying employers will be able to access a £2,000 incentive when they recruit a new apprentice aged 16 to 24. This is clearly intended to encourage more employers to create opportunities for younger people and to reduce some of the financial barriers that can come with taking on new staff.
In practical terms, the payment is structured in two stages, with the first instalment paid after the apprentice has been in post for 90 days and the second after 12 months. The funding is routed through the training provider, which helps ensure there is appropriate oversight and that the payments are linked to genuine employment and delivery.
For housing organisations, particularly those not operating with large levy balances, this creates a more accessible entry point into apprenticeships as a recruitment route. It allows you to look again at roles where you may previously have hesitated due to cost and consider whether there is now a stronger case for bringing in new talent.
Foundation apprenticeships offer a more supported starting point
Foundation apprenticeships continue to develop and are likely to become increasingly relevant for housing employers. These programmes are designed for individuals who are at the very start of their careers and may not yet be ready to move straight into a clearly defined role.
Instead, they provide a broader introduction that allows individuals to build confidence, develop core employability skills and gain a better understanding of different occupational pathways before specialising.
In housing, this has real value. Roles often involve working with people in complex or sensitive situations, and it is not always easy for someone new to the sector to fully understand what that entails until they are in it. By creating space for a more gradual introduction, foundation apprenticeships can help individuals make more informed decisions about their future and reduce the likelihood of early drop-off.
We already see this in practice through programmes such as our Level 2 Housing and Property Management Assistant Apprenticeship, which is designed as an entry point into the sector. It supports learners to build a strong foundation in housing, from understanding tenancy management through to developing the confidence to work with residents and contribute to service delivery.
While not labelled as a foundation apprenticeship, the intent is closely aligned. It provides that structured starting point, giving individuals the knowledge, behaviours and confidence they need before progressing into more specialist or higher-level roles.
Shorter, more flexible training through apprenticeship units
One of the more notable developments from the session was the introduction of apprenticeship units, which are designed to provide shorter, targeted training without the need to commit to a full apprenticeship programme.
These units are aimed at individuals already in work and focus on specific skills or knowledge areas, often delivered over a relatively short period. The intention is to give employers a more flexible way to address particular skills gaps, especially where a full programme would be disproportionate to the need.
For housing organisations, this creates a different kind of opportunity. Instead of relying solely on longer programmes, there is now the potential to support staff with more focused development in response to changes in regulation, evolving service demands or new approaches to working with residents.
While the initial units are focused on areas such as digital, construction and engineering, the expectation is that this will expand over time, and it is likely that more sector-relevant options will emerge as the model develops.
Changes to funded apprenticeship routes
As part of the wider reforms, funding is being redirected towards priority areas, and this includes the decision to withdraw funding from a number of apprenticeship standards for new starters from September.
It is important to be clear that this does not affect learners who are already on programme, who will continue to be funded as expected. However, it does signal a shift in how funding is being prioritised going forward.
For housing employers, this is most likely to be felt in relation to leadership and management development. These remain critical areas across the sector, particularly as organisations continue to navigate increasing complexity, regulatory expectations and service demand.
While funded apprenticeship routes may change, the need to develop confident, capable leaders does not.
We are currently reviewing our programme offer in partnership with organisations such as the Chartered Management Institute (CMI) and ILM to ensure there are clear, credible alternatives in place for employers who want to continue investing in leadership development.
This is likely to be an area where organisations take a more blended approach going forward, combining funded opportunities where available with other structured development pathways.
Wider changes to funding and the levy
Alongside these developments, there are also changes being made to the way the levy system operates, including adjustments to how long funds remain available and changes to co-investment rates.
While these are less visible than some of the headline announcements, they do have an impact on how funding is managed and how quickly it needs to be used. For organisations that regularly use apprenticeships, this reinforces the importance of planning ahead and making sure funding is being used effectively.
What this means in practice for housing
Taken together, these changes reflect a broader shift in how apprenticeships are being positioned and used. There is a clear move towards creating more opportunities for young people, introducing greater flexibility in how training is delivered, and ensuring funding is aligned with defined priorities.
For housing organisations, this brings both opportunity and responsibility. There is more support available to bring new people into the sector and more flexibility in how you develop your existing workforce, but there is also a need to stay close to how these changes are unfolding and to adapt your approach accordingly.
How Kingdom Academy can support you
We recognise that keeping up with these changes is not always straightforward, particularly when you are balancing operational demands alongside longer-term workforce planning.
At Kingdom Academy, we are working closely with housing organisations to help interpret these developments and apply them in a way that is practical and relevant to your teams. Whether that involves reviewing your current apprenticeship approach, exploring new entry routes or looking at how best to support your existing staff, we are here to support those conversations.
If you would like to talk through how these changes might apply in your organisation, we would be very happy to do that with you.