Introduction: Significant Updates to Functional Skills Regulations

The government is introducing Relaxed Functional Skills Rules for Apprentices, as outlined by the DfE. Under these revised guidelines, adult apprentices (aged 19 and over) may no longer be required to pass Functional Skills English and maths to complete their apprenticeship. These qualifications will now be optional for this group, whereas 16–18-year-olds must still pursue them.

This policy change will have a considerable impact on apprenticeship providers, leading to a reduction in the number of learners taking Functional Skills exams. As a result, maintaining in-house testing facilities may no longer be financially practical due to lower exam participation.

Implications for Training Providers

Reduced Exam Participation

With fewer adult apprentices requiring Functional Skills assessments under the Relaxed Functional Skills Rules, training providers will likely experience a decline in exam registrations.

Higher Financial Strain for In-House Testing

Operating in-house exams involves fixed costs, including exam board fees, administrative staffing expenses, and per-exam charges. As exam participation decreases, sustaining internal testing may become financially unsustainable. A viable alternative is using a pay-per-exam service such as Pass Functional Skills (PFS).

Cost-Effective Alternative: Pay-Per-Exam with PFS

A pay-per-exam model like PFS helps providers cut unnecessary expenses, eliminating the need for:

  • Annual exam board fees
  • Salaries for dedicated administrative staff
  • Overhead costs of running in-house exams

Instead, providers pay only when an exam is needed, ensuring compliance while keeping costs manageable.

Conclusion: Adapting to the Revised Functional Skills Requirements

The DfE’s Relaxed Functional Skills Rules for Apprentices represent a significant policy shift, removing a major requirement for apprenticeship completion. However, for training providers, continuing in-house exam operations may no longer be a financially viable option.

By adopting a pay-per-exam approach, providers can effectively adjust to these changes, lower expenses, and optimize Functional Skills assessments.

Find Out More

Get in touch with Pass Functional Skills today at 020 4574 9155 to explore a cost-effective, fully managed Functional Skills exam solution. Alternatively, fill out the contact form below, and one of our specialists will contact you to discuss how the Relaxed Functional Skills Rules for Apprentices may impact your organization.