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I think I asked the helpdesk the same question as you, Thao. This was their response:
I understand from you email you have requested confirmation regarding the changes to the 26/27 funding rules following the budget announcement. You have requested if the if the reduced co-investment rate (75%) will be applied to existing apprentice’s payments where there are insufficient funds, or new apprentices who start from 1 August 2026 only?
The only information we have so far is the following:
Q: Will the new rate of co-investment apply to existing apprentices on programme?
A: Employers will continue to benefit from the 95% rate of government co-investment for existing apprentices on programme (once their levy funds are exhausted). The new government co-investment rate of 75% will apply from August 2026.
I understand this does not fully answer your question, however, further detail will be provided when the new funding rules are published.
In summary. Further details regarding the new rules will be published in the 26/27 funding rules.
Thao Nguyen
Co-investment for levy-paying employers for starters before Aug
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We got a good question from our Sales team that we are quite unsure. If a learner starts in Jan/ Feb and the levy company doesn't have enough money in their levy pot, come August, will they pay 5% or 25% of the shortfall? Does this rule only apply for new starts from August 26, or it comes into effect for all learners on 1st August 26 if that makes sense.
Thank you so much!