How Can Banks Leverage Apprenticeship Reforms to Address Talent Challenges?
Apprenticeships in the UK have a long and storied history, tracing back to medieval craft guilds. Today, they are undergoing another transformation, one of many and one that could reshape how banks attract, develop, and retain talent in an increasingly competitive landscape.
A System in Constant Evolution
Apprenticeships have always moved in cycles, with government-led reinventions typically every 5–10 years aimed at boosting their appeal. In 2025, the UK finds itself at the beginning of a new cycle, marked by sweeping policy changes and a renewed focus on aligning skills development with economic needs.
Throughout their history, apprenticeships have offered individuals a compelling alternative to traditional education: the chance to earn while learning, avoiding student debt, and gaining real-world experience, contacts and certification. For employers—especially in sectors like banking—apprenticeships are a strategic tool to bridge the persistent gap between qualifications and workplace readiness, as well as an opportunity to refresh recruitment practices and nurture talent from, perhaps, a wider and more diverse pool.
The Banking Sector’s Apprenticeship Challenge
Banks have long voiced concerns about the education system’s ability to produce work-ready talent. Apprenticeships offer a solution by allowing banks to shape the skills, knowledge, and behaviours of their workforce. They also serve as a powerful mechanism for upskilling existing employees, supporting succession planning, and addressing internal skills and knowledge gaps.
However, the journey hasn’t been without hurdles. The 2012 “Trailblazer” reforms aimed to give employers more control over apprenticeship design and delivery and increase ownership. While this “employer ownership” model remains central in 2025, its effectiveness—particularly in complex and fast-moving sectors like financial services—has been mixed.
All this is funded through the Employer Levy - a centralised levy system, which is essentially a system of taxation on large employers. Since 2017, centralised levy funds can be utilised by all employers to fund apprenticeships starts. Given their size, many banks and other financial services providers are required to contribute to the Levy. As a consequence, an important consideration for all banks is how the funds contributed can be effectively utilised in an organisation’s learning and development strategy for talent acquisition and retention.
Policy Shifts in 2025: A New Direction
Following the 2024 General Election, the UK government has introduced a raft of reforms aimed at revitalising the apprenticeship system. Key changes include:
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Creation of Skills England: This new body replaces the Institute for Apprenticeships and Technical Education (IfATE) and aims to increase flexibility in skills training, better address regional skills shortages, and align more closely with the proposed UK’s Industrial Strategy.
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Streamlining Requirements: Adult apprentices will no longer need to complete functional skills qualifications in maths and English, and the minimum duration for apprenticeships will be reduced from 12 to 8 months—making programmes more accessible and responsive.
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Rebranding the Apprenticeship Levy: Now called the “Growth and Skills Levy,” the system remains largely unchanged for now, but future reforms are expected to rebalance funding in favour of lower-level apprenticeships.
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Sector-Specific Updates: New apprenticeship standards tailored to financial services roles are in development, with implementation expected between late 2025 and early 2026. Notably, these standards will no longer mandate specific qualifications, giving banks and training providers more flexibility in how they structure learning.
Opportunities for Banks
These changes present a significant opportunity for banks to rethink how they use apprenticeships. With greater flexibility, reduced bureaucracy, and a clearer alignment with national economic goals, apprenticeships can become a more agile and strategic component of talent development.
Banks can also work more closely with bodies like the Chartered Banker Institute to integrate high-quality learning content and professional qualifications and certifications into apprenticeship pathways—even if they’re no longer formally mandated. This approach can enhance the value of apprenticeships for both learners and employers, supporting long-term career progression and professional recognition.
The Institute’s Role in a Changing Landscape
The Institute has always embraced and been supportive of apprenticeships and their ability to encourage and support greater workforce diversity. The apprenticeship ethos of open and accessible career development with direct employer support aligns with the Institute’s own mission. As the apprenticeships system has evolved, the Institute has innovated to ensure that whatever the mechanism, we use our voice to ensure apprenticeships provide new and existing talent with the opportunity to acquire and enhance the knowledge, skills and behaviours needed in a fast-paced sector.
Looking Ahead: A Smarter Approach to Talent
As the UK’s financial services sector continues to evolve, so too must its approach to talent. Apprenticeships are not just an entry-level route for school leavers—they are a dynamic, adaptable tool for building a resilient, future-ready workforce across a wide range of career stages.
By embracing the latest reforms and working collaboratively with training providers and professional bodies, banks can unlock the full potential of apprenticeships. The result? A more professional, skilled, loyal, and diverse workforce—ready to meet the challenges of tomorrow.
Want to hear how apprenticeships are transforming careers in banking? Tune in to our Skills Conversations podcast, to hear about the apprenticeship journeys and insights.
Looking to strengthen your apprenticeship strategy in banking? Discover how the Institute works alongside employers and training providers to support skills development and professional growth. Email [email protected] to start the conversation.