DWP reviews 30/70 funding split for larger apprenticeship units

The Department for Work and Pensions (DWP) is reviewing the funding arrangements for larger apprenticeship units after receiving early feedback from training providers about the current 30/70 cost-split model. Kate Ridley-Pepper confirmed that officials are exploring alternative approaches to how these higher-value programmes are financed, acknowledging concerns raised during the initial implementation phase. The existing funding mechanism, which determines how costs are shared between government and employers, has come under particular scrutiny regarding apprenticeship standards with larger price tags. Provider feedback suggests the current 30/70 split may create financial barriers or cash-flow challenges that could disincentivise delivery of certain vocational pathways. For Lead Members with responsibility for skills and employment, this review signals potential changes to how apprenticeship provision is commissioned and funded locally. Local authorities should monitor these developments closely, as revised funding models could directly impact provider viability, employer engagement, and the availability of high-quality training opportunities for young people in their areas.