Deciding the funding of skills products
Published 25 June 2026
Applies to England
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Introduction
Each funding band or funding rate is set by the Secretary of State for Work and Pensions.
This applies to apprenticeships, foundation apprenticeships, and to apprenticeship units, which are all referred to throughout this guidance as “skills products”.
A funding band or rate describes the maximum government contribution per learner.
Skills England will make a funding recommendation to assist the Secretary of State in deciding the appropriate funding band or rate for a skills product. The Secretary of State will consider that recommendation, alongside other relevant information such as impact and affordability.
Funding arrangements during 2026
To make a funding recommendation, Skills England invites occupational groups to submit their own costings to us. We balance this with our funding rates created using our independent evidence base and Office for National Statistics (ONS) data.
This model has served the sector well since 2022. However, we (Skills England) need a more responsive funding approach covering all skills products. This will enable faster, more consistent decisions that are better aligned with emerging needs.
As a starting point, we will be operating an interim funding model until later this year (2026) using data to inform decisions, alongside employer input where appropriate.
Rather than asking occupational groups to supply quotes from assessment organisations, we will make use of actual assessment cost data to help set our estimate.
We may continue to ask occupational groups for advice and to offer on-programme costings where needed.
Future approach to funding
Skills England is progressing work to further modernise and strengthen our funding methodology. Our new model will be modelled and tested over the summer of 2026, with further details available later this year.
The role of the Skills England Expert Network
In March 2026, Skills England announced the important role that our new Expert Network will have in shaping future skills products.
The Expert Network is a broad national community of volunteer occupational and sector experts. We convene groups or individuals from this network to undertake specific tasks.
Before making a funding recommendation, we (Skills England) may decide to seek external advice. This might include contacting members of our Expert Network for their views on funding. This will be factored into our new model design.
Data sharing
Skills England will take into consideration any information provided by the Expert Network and occupational groups. We (Skills England) may share this information with the Secretary of State or their delegate, and within the Department for Work and Pensions (DWP) to support decision making.
Any information provided by the Expert Network or occupational groups may also be used by us for other purposes connected with the consideration of funding calculations.
This includes developing and testing potential new processes or improvements to our existing processes. We may use the information to inform future rates or other estimates or calculations which feature as part of the funding allocation process.
Approving funding
Funding recommendations are reviewed and approved via Skills England’s internal governance process.
When approved, we will submit our recommendation for a final funding decision by the Secretary of State, or their delegate.
Funding revisions
After a skills product is approved for delivery, it might be necessary to revise, adjust, or correct it. This usually does not happen until the skills product has been in delivery for some time. Depending on what those changes are, Skills England might need to make a new funding recommendation.
It is important to note that if a new funding recommendation is made, the funding could be lower, the same, or higher than the current funding assigned.
We (Skills England) will typically decide to make a new funding recommendation if:
- there is a significant change of duration
- a mandatory qualification is added or removed
- there is a change of level
- the skills product is split or merged
- a change in entry requirements is made
- significant changes in content are made