In our webinar on 26 February 2025, ‘The latest on Functional Skills: sector analysis and recommendations’, we partnered with the Fellowship of Inspection Nominees (FIN) to explore the recent changes in Functional Skills requirements in apprenticeship programmes. This session came shortly after the Department for Education’s announcement to remove Functional Skills exit requirements for adult apprentices while maintaining the requirement for learners aged 16-18. The discussion drew on fresh data analysis and sector insights to help providers manage quality and compliance during this policy transition while addressing pertinent questions on many providers’ minds.

• Watch the full webinar on-demand here.

• You might also be interested in our follow up webinar with compliance specialist, Tony Allen, ‘Understanding the funding rules V2 2024/5’ – available on-demand here.

Data-driven insights into Functional Skills

Mark Abrahams, Head of Research & Analytics at Aptem, led the analysis, presenting findings from a dataset of over 158,000 learners. Focusing specifically on the 16-18 age group, the analysis shows that English and maths Functional Skills appear to have a measurable impact on learners’ progress. Programmes that include a Functional Skills component were found to be 60% more likely to fall behind schedule compared with those without. Mark notes that nearly one-third of learners with Functional Skills Aims were reported as falling behind their planned end dates. In addition, the data indicates that withdrawal rates were significantly higher among apprentices required to complete these components, with some groups showing up to a 66% withdrawal rate compared to 45% for those without Functional Skills requirements.

While the data does not pinpoint the exact causes behind these trends, it suggests that the shorter timeframe allocated to Functional Skills and the additional pressure of completing these assessments may be contributing factors. Mark also highlights that while many learners may complete their apprenticeship programmes, those with a Functional Skills component are statistically more likely to finish late, which has implications for operational funding and overall achievement metrics.

Quality, compliance, and the need for reform

Kerry Boffey, CEO and Founder of the Fellowship of Inspection Nominees (FIN), and Jane Firth, Director of Quality and Compliance at Remit Training, brought their sector expertise into the conversation by discussing the quality challenges and compliance issues arising from the current Functional Skills model. Kerry explains that recent research among FIN members underscored the need for reform rather than complete removal. According to the survey responses, nearly 400 members participated in the research, indicating that the current Functional Skills format can negatively impact achievement rates. Jane adds to this view, noting that the exit requirement is often seen as a barrier for learners, especially in vocational areas where employers value strong English and maths skills. While removing the exit requirement for 19-plus learners is a welcome change, the core need for robust literacy and numeracy support remains unchanged.

The discussion also acknowledges that some employers may not want their apprentices to sit traditional Functional Skills exams. However, both Kerry and Jane stress that employers still require evidence of a learner’s capability in English and maths. Providers should engage in proactive, documented conversations with learners and employers about the need for continued skills development, regardless of whether the formal Functional Skills requirement remains in place.

Practical steps for providers

Georgina Burton, Head of Implementation at Aptem, outlined practical steps for providers to adapt to the new rules and maintain quality assurance. Accurate data management is essential, especially when determining which learners are affected by the policy change. Providers are encouraged to review learners’ original start dates rather than any subsequent restart dates to correctly categorise them as 16–18 or 19-plus. This distinction is crucial as the new funding and compliance rules apply differently based on age.

Providers must meet the 1 April 2025 deadline to hold and document a Functional Skills decision meeting. These meetings should involve learners and their employers to ensure that decisions on whether to continue with any form of Functional Skills training are made collaboratively and recorded thoroughly. Georgina points out that providers need to plan for a transition in support mechanisms; if the dedicated Functional Skills teams are scaled down or removed, vocational tutors may need to take on a more significant role in supporting English and maths skills development.

Aptem’s platform offers helpful functionality for this change, including customisable review templates. This helps providers structure conversations, track learner progress, and generate compliance documents that reflect both the learner’s decision-making process and the support offered by the provider. Georgina has prepared this Aptem Help Centre ‘Guide to implementing the new Apprenticeship Functional Skills rules for existing learners’ which provides further advice, and a Functional Skills review template, for Aptem customers.

Looking ahead

Throughout the session, our speakers agreed that while the policy change for 19-plus learners offers some relief, significant challenges remain for the 16-18 group. There is concern that this age group may become less attractive to employers if the burden of meeting exit requirements continues to affect their progress. The webinar underscored that providers must balance compliance with the requirement to offer high-quality, supportive learning environments.

We sincerely thank Kerry Boffey and Jane Firth for lending their expertise to this important discussion. You can watch the full webinar on-demand here.