Across the UK, accounting firms are facing growing pressure on their bottom line, and not just from market volatility or client churn. The cost of staffing is rising sharply, and for many firms, it’s becoming increasingly difficult to justify traditional recruitment and training models.
Gov UK Apprenticeships: What’s Changed and Why It Matters
The gov uk apprenticeships scheme has historically provided a vital pipeline of junior talent for accountancy practices, particularly through the Level 7 apprenticeship route. It allowed firms to hire and train aspiring professionals with significant government support.
It has been announced that the support is soon going to come to an end.
Where previously up to 95–100% of apprenticeship training costs were covered, many firms are now expected to absorb more of the burden. On average, that means up to £10,000 more per apprentice, per year, a figure that adds up quickly in multi-year training contracts.
The Unseen Cost of Accounting Support: 1,900 Hours and Counting
It’s not just about the funding. Firms often underestimate the hidden overheads that come with onboarding junior staff:
- Time spent on supervision, corrections, and internal reviews
- Productivity loss from inexperience and off-the-job training
- Administrative work tied to payroll, training records, and compliance
- Equipment and IT provisioning (including IT support for accountants)
- Software licenses, onboarding tools, and desk space
- The inevitable learning curve,especially in high-pressure environments
Some firms estimate that over 1,900 internal hours per junior are lost in their first year, time taken away from partners, managers, and seniors who are often already stretched.
These are the real costs of accounting support, and they’re increasingly difficult to ignore.
From Sub-Contracting to Temporary Staffing Solutions: The Search for Balance
This evolving landscape has sparked a wave of conversations across the profession. Firm leaders are exploring new ways to meet client needs while protecting team wellbeing and maintaining profitability.
Among the options being discussed:
- Temporary staffing solutions during peak audit or reporting seasons
- Sub-contract models for overflow or non-core engagements
- More flexible utilisation of accounting service online delivery channels
- Reviewing the internal mix between senior, mid-level, and apprentice roles
- Smarter use of technology and remote workflows
Outsourcing is part of this conversation; the key is finding a model that fits your firm’s goals, values, and capacity challenges.
Why UK Outsourcing Is Entering the Strategic Conversation
While not every firm is ready to change its resourcing model, many are already asking difficult questions. In conversations we’ve had with partners this year, there’s a growing recognition that the old assumptions no longer hold.
Where once firms could hire a junior, train them up, and absorb the cost slowly over time, today’s economic climate demands more flexibility and more clarity.
Whether that means UK outsourcing, subcontracted help, or a shift in training strategy,leaders are looking for sustainable ways to grow without overextending.
What This Means for You
If you’re currently budgeting for new apprentices or reviewing your hiring plans for 2026 and beyond, it’s time to take a broader view.
The Level 7 apprenticeship funding change is just one piece of the puzzle. Add in the rising cost of salaries, National Insurance increases, and operational overhead, and it becomes clear that every hire must be a strategic one.
Next Steps: Start the Conversation
At ResourcePlus, we’re speaking to firms across the UK who are rethinking their staffing model, balancing growth against risk, and looking for new ways to deliver client value.
Whether you’re already adjusting your talent strategy or just want to understand your options, now is a good time to talk.
FAQs Around the Level 7 Apprenticeship Changes
How has the government changed its support for apprenticeships in the UK?
Starting January 2026, the UK government will restrict funding for Level 7 apprenticeships (equivalent to master’s degrees) to individuals aged 16 to 21. Apprentices aged 22 and over will no longer be eligible for government funding through the apprenticeship levy. Exceptions apply for apprentices with an Education, Health and Care Plan (EHCP) or those who are care leavers, who can still be funded up to the age of 25.
How much will the government pay towards apprenticeships in the UK?
The government will fully fund Level 7 apprenticeships for individuals aged 16 to 21. For apprentices aged 22 and over, employers will need to cover the full cost of the apprenticeship training.
What are the implications of the Level 7 apprenticeship changes for accounting firms?
Accounting firms may face increased costs when hiring apprentices aged 22 and over, as they will need to fund the full cost of Level 7 apprenticeship training for these individuals. This change may prompt firms to reassess their hiring and training strategies.
What are the hidden costs of in-house accounting support?
Beyond salaries, firms often incur additional costs when onboarding and training junior staff. These include time spent by senior staff on mentoring, IT setup, administrative support, software licenses, and other infrastructure expenses.
What alternatives are accounting firms considering after the Level 7 changes?
Firms are exploring various staffing models, such as temporary staffing solutions, sub-contracting, and utilising online accounting services, to adapt to the changes in apprenticeship funding and manage costs effectively.
