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Welcome to FE Soundbite Edition 846: 9th May 2026. Will Apprenticeship Unit design change the focus of Providers? ... and lessons from the worklessness capital.
This is the weekly e-newsletter and e-journal by FE News: ISSN 2732-4095. We know life is busy, so here's a snapshot of the latest announcements and epic thought leadership articles from sector influencers and thought leaders across FE and Skills this week on FE News.
Gavin’s Reflective Perspective
Hope you've had a good week.
Apprenticeship Units update
DWP dropped the technical funding guide on Friday about Apprenticeship units. 30 to 140 hour units, 1 to 16 weeks, ages 19 plus, built from existing standards. Two milestone payments rather than monthly profiling. 95/5 co-investment for levy payers, fully funded for non-levy payers.
Apprenticeship Unit delivery - no sub-contracting
DWP also shared some updates on the delivery. Providers must already be on the Apprenticeship Provider and Assessment Register (APAR), actively delivering in the standards or tier 2 sector subject areas the units are drawn from, free of any “at risk” indicators on the Apprenticeship Accountability Framework, and clear of contractual funding restrictions. Subcontracting is not permitted in any form. Highlighted and underlined it... as I think this is significant to highlight.
Could this drive Merger and Acquisition activity of specialist provision?
Now, the way I see Apprenticeship Units progressing over time is that they will be short, specialist, and, crucially, rapidly evolving. In a fast-changing world of work, these units will need to be constantly updated to stay relevant to employers. That's the innovation. The larger Apprenticeships are the foundation; the Apprenticeship units are where we ensure learners stay current... and, hopefully, ahead of the skills employers need.
So if that's the potential direction of travel, delivery will lean heavily towards very specialist provision and expertise... which will be rapidly evolving and updating to meet the fast-changing skills needs of the employer/sector it serves. With this in mind... the no-subcontracting rule and the APAR requirements suddenly become really significant. Smaller, and very specialist providers may find themselves excluded, while larger providers won't necessarily have the niche expertise to deliver. I think that tension could drive some interesting M&A activity, with larger providers or college groups looking to acquire smaller, specialist Training Providers, specifically for their expertise in delivering these rapidly evolving, increasingly specialist Apprenticeship units.
Apprenticeships come first... when it comes to Levy spending that is
For employers... this is an interesting and important technicality, which I think is designed to drive the market and push full Apprenticeships to come first, rather than lean on the smaller units. Where a levy account runs short in a given month, apprenticeships are paid first... and units are then subject to co-investment. The annual transfer allowance covers apprenticeships and units combined. There is no separate pot for the new offer, so this appears to be 'by design' to drive the delivery from Providers.
Building ladders, not pulling them up from an Employer Perspective
Sharon Blyfield from Coca-Cola Europacific Partners had a brilliant piece this week, and timing-wise, it could not be more relevant. Her point... flexibility in the new Levy is welcome, but flexibility on its own isn't enough. What matters is whether the funded routes still exist for the young people who need them most.
Sharon is particularly worried about the impact of defunding of entry level standards, specifically the L3 Team Leader/Supervisor and the L6 Chartered Manager Degree. Both routes have opened doors for many people who couldn't follow the traditional university path.
Lessons from the 'Worklessness capital'
Dr Glenn Athey wrote a really interesting piece looking at Grimsby, which was once called Britain's "worklessness capital" by the BBC. Grimsby has well-paid offshore wind opportunities and aligned college courses... yet vacancies stay unfilled.
His point... qualifications are not the same as skills... and skills do not develop in a vacuum. I'd recommend checking it out.
Energy Transition Skills Gap
Graham Hasting-Evans at NOCN was making a related point on the energy transition skills gap and the delivery of the Clean Energy Jobs Plan (which is significant... this was originally mooted back in October 2025 that 430,000 additional skilled jobs will be required by 2030)! Again, highly recommended!
Rewriting the Rules is live
We launched the first episode of Rewriting the Rules with NCFE on Wednesday... what V Levels can learn from T Levels. Michael Lemin and David Rowley from NCFE joined Ella Tsui Lau from Manchester College for a properly useful discussion. Episode 2 is coming on Wednesday, Rethinking the Future of Assessment!
Breaking Barriers Collective | 2 June | London
Only a few weeks until Breaking Barriers Collective (aka the NEETs Collective), with the Edge Foundation. Early bird ends at the end of next week, so if you want to get a ticket at the lower price, now is the time to do it... or a ticket at all, as there are under 5 tickets remaining!
I hope you enjoy FE Soundbite this week.
Epic Exclusives Thought Leadership Articles
Our Top 3 Thought Leadership Articles This Week
Firstly, Building Ladders: Why The Levy Must Protect Routes That Open Doors By Sharon Blyfield, Head of Early Careers and Apprenticeships, Coca-Cola Europacific Partners (CCEP)
Secondly, A constrained labour market strengthens the case for structured pathways for NEETs By Harry Hobbs, Head of Business Intelligence at Baltic Apprenticeships
Finally, Rebuilding The Skills Ecosystem: Colleges That Collaborate Are Making The Biggest Gains By Dr Glenn Athey, author of The Local and Regional Economic Development Handbook
This week, we also had some other Epic Exclusives!
Diagnosed but Silenced: Late Diagnosis, Disclosure and the Hidden Cost of Getting It Wrong in FE By Nathan Whitbread, Founder of The Neurodivergent Coach
What’s New in the World of FE?
Announcements
DWP sets out how Apprenticeship Units will be funded under the Growth and Skills Levy
Voices
The Energy Transition is Moving Faster Than our Skills System By Graham Hasting-Evans, Chief Executive of NOCN Group
In The Know
We have big plans for upcoming Collectives, and you can get involved. We have learnt a lot from the Green Mindset Collective, and we are drawing from this on how to give people more of a voice.
Join us for the Breaking Barriers Collective event in partnership with Edge Foundation, working together collectively to solve the NEET puzzle.
This isn't a conference; it's a collective. It isn't a chalk-and-talk event, but an interactive one. It's rolling up your sleeves and making real change, where you get involved and actually give real input. Join us and help shape the sector!
By Danny O’Meara, Operations Manager, FE News and | 