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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

Effective Date
1 April 2026
Published
10 February 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

  1. Detected

    8 March 2026

  2. Published

    10 February 2026

  3. Effective

    1 April 2026