The apprenticeship sector is set to undergo significant change over the next few years as government policy steers provision towards shorter courses, younger learners and priority sectors. AY26 Q1 data provides a snapshot of the market before key reforms — including the rollout of the Growth and Skills Levy in April 2026, and the removal of funding for new Level 7 starts for learners aged 22+ from January 2026 — begin to materially reshape the sector.
Starts in AY26 Q1 are up 7.5% on last year (143k vs 133k), above the 1.5% growth seen from AY24-AY25 and slightly below the 9.0% growth seen from AY23-AY24. Starts in AY22 were boosted by learners delaying starting their apprenticeships in AY21 due to pandemic‑related uncertainty, with starts dipping in AY23 as this backlog cleared.
Multiverse saw the largest growth in starts in AY26 Q1, rising from fourth to first as starts rose from 2.8k to 4.9k (+71%). BPP recorded the steepest fall, moving from first to fourth as starts dropped from 4.2k to 2.8k (‑33%). Lifetime had a slight drop from third to second place, while Knovia moved into second following strong growth (+18%).
Market share of starts across the top 10 providers grew slightly from 15% in AY22 Q1 to 17% in AY25 Q1, but remained stable so far in AY26 Q1, indicating a slowing in market consolidation. However, we expect consolidation to continue over the coming years, likely accelerated by government policy changes.
The SSA2 areas with the largest growth are Business Management (+2.0k starts; +11%), Health and Social Care (+1.8k starts; +14%), Digital Technologies (+1.4k starts; +16%), and Child Development and Wellbeing (+1.1k starts; +13%).
In line with AY25 trends, Early Years Educator, Accountancy or Taxation Professional, and Installation and Maintenance Electrician are the most popular standards for AY26.
The strongest growth in starts has been in Early Years Educator (+1.25k; +23%), Business Analyst (+1.01k; +112%), Children, Young People & Families Practitioner (+0.74k; +51%), and Operations Manager (+0.66k; +19%), broadly aligning with the fastest-growing SSA2 sectors.
The proportion of Q1 starts delivered by Independent Training Providers (ITPs) continued to rise in AY26, reading 57%, up from 54% in AY25.
The historical movement towards higher-level apprenticeships continued in AY26 Q1, with Level 4-7 standards constituting 40.3% of starts in AY26 Q1, up from 37.1% in AY25 Q1. Level 7 standards constituted 8.7% of starts in AY26 Q1, up from 8.1% in AY25 Q1.
Apprenticeship start values (calculated by applying the maximum funding value for each standard to the number of learners starting that standard) show a clear upward trend, rising by 7.2% p.a. from AY22 Q1 to AY26 Q1 (£1.4bn to £1.9bn). This growth is materially higher than growth in apprenticeship starts, reflecting increases in standard funding and a continued shift to higher-level standards. Level 4-7 standards accounted for 48.0% of start value in AY26, up from 41.2% in AY22, with Level 7 standards accounting for 12.4% in AY26 Q1, up from 10.2% in AY22 Q1.
Level 7 Q1 starts rose by 13.1% from AY25 to AY26, with the age profile tilting slightly more towards older learners. While this represents an increase, the extent is smaller than might have been expected given the removal of funding for Level 7 starts for learners aged 22+ in January 2026.
Q1 typically accounts for around 40% of annual starts and therefore usually provides a strong early indicator of how the year may unfold.
Looking ahead to the coming year, a sharp rise in Level 7 starts is expected in AY26 Q2 as employers accelerate enrolments ahead of the January 2026 funding withdrawal for learners aged 22+. Given that Level 7 standards typically take two to three years to complete, this surge will lock in a large cohort of learners and account for a higher share of government funding for several years. This is counter to the intent behind recent policy changes and will, in the short-term, impede the reallocation of funding to new initiatives such as foundation apprenticeships and apprenticeship units. It is also likely to accelerate decision-making on areas such as apprenticeship streamlining as the government looks to reduce apprenticeship spending to free up funds for its new initiatives.
Overall, the data suggests that the apprenticeship market was largely unaffected by policy changes in AY26 Q1, with their impact likely to become more visible over the remainder of the year.
