CRITICALPolicy Update
Co-investment rate reduced to 3% for SMEs
The employer co-investment rate for non-levy paying SMEs has been reduced from 5% to 3%, effective April 2026
Details
As part of the Spring Budget 2026, the government announced a reduction in the employer co-investment rate from 5% to 3% for small and medium-sized enterprises. This applies to all apprenticeship standards and aims to encourage greater uptake among smaller employers. Large levy-paying employers are unaffected.
Timeline
Detected
8 March 2026
Published
10 February 2026
Effective
1 April 2026