3 Key Apprenticeship and Skills Funding Updates Shaping Hiring Right Now
Over the past three months, there have been three significant developments in the world of apprenticeships and adult skills funding. Collectively, they signal growth, flexibility, and a stronger push for technical excellence. But for training providers, colleges, and charities, these policy changes all lead to the same question:
👉 How do we find and retain the right people to deliver them?
At Red 5 People, we recruit across the employability, skills, and criminal justice sectors. We see first-hand how funding updates translate directly into workforce challenges. Here’s our take on the three latest announcements, and what they mean for your hiring strategy.
1. £53m Adult Skills Budget Devolved to the East Midlands
What’s happening?
From August 2025, the East Midlands Combined County Authority will control its own adult skills funding worth £53m. Local leaders will set priorities, shaping what programmes get funded and where.
What this means for hiring:
Providers will need to align their staffing quickly with regional priorities. If health and social care, logistics, or green jobs are high on the list, that means more demand for tutors and assessors in those sectors.
Expect competition for talent in the region, with salaries and benefits becoming a battleground as providers compete for the same pool of sector experts.
Key challenge: A regionalised funding system means speed and agility are vital. Providers that can pivot their hiring quickly will have the edge.
2. Apprenticeship Funding Rules 2025–26: Flexibility, Foundation Routes & Incentives
What’s happening?
The new rules introduce foundation apprenticeships, shorter minimum durations (8 months instead of 12), and up to £2,000 in employer incentives. End-point assessments also become more flexible.
What this means for hiring:
Shorter apprenticeships will likely increase throughput, driving up demand for delivery staff to handle a higher volume of learners.
Foundation apprenticeships could bring in new cohorts such as younger learners and career changers, meaning tutors will need strong coaching and pastoral skills alongside subject knowledge.
Employers accessing incentives will push more SMEs into the apprenticeship market, creating surges in demand.
Key challenge: Scaling staffing sustainably. Providers must be careful not to overhire in the face of short-term spikes while still ensuring quality delivery.
3. £275m Industrial Strategy Skills Boost
What’s happening?
A £275m government package will fund new technical excellence colleges, AI and digital manufacturing courses, and capital upgrades for training providers.
What this means for hiring:
Specialist trainers in AI, engineering, and digital skills will be in extremely high demand.
Providers may need to head-hunt directly from industry, where salaries are often significantly higher, or develop strong CPD routes for existing staff.
Key challenge: Convincing high-calibre industry professionals to step into training roles, often at lower pay. This requires creative employer branding, strong development offers, and recruitment partners who can bridge that gap.
Red 5’s Take
For providers, these updates represent a fantastic opportunity to grow and make a real difference. But they also amplify one of the sector’s toughest realities: people, not policies, deliver programmes.
At Red 5, we work with organisations every day who are navigating:
Acute shortages of qualified tutors and assessors
Regional competition driving up costs
The challenge of attracting industry specialists into teaching roles
Our role is to help you find the right people fast so you can focus on delivering the programmes that transform lives.
Final Word
The funding landscape is changing fast. With devolved budgets, shorter apprenticeships, and major investment in technical skills, providers must get their hiring strategy right to seize the opportunities ahead.
If you’re looking to grow your delivery team, whether that’s tutors, assessors, or leaders, Red 5 People can help you navigate these changes and connect you with the right talent.
📩 Get in touch to discuss how we can support your next phase of growth.