In National Apprenticeship Week 2026, we thought we’d reshare this article from Richard Cooper, explaining why advice firms should grasp the opportunity to boost skills, cut training costs and improve staff retention and morale with apprenticeships.
The financial advice sector is changing fast. Rising regulatory expectations, an increasingly complex product landscape and a long-term need for high-quality client service mean that firms can struggle to find staff with the right skills – particularly if they want to grow. Poaching experienced paraplanners and administrators from other firms can be expensive and integrating them does not always go to plan. But there is another way: for many firms, apprenticeships are an under-used but highly practical opportunity to close the skills gap. They build in-house technical capability, improve retention and create a pipeline of people trained to your processes and culture.
Efficiency, staff retention and better client outcomes
Because regulatory compliance and excellent client service across a complex landscape are fundamental to financial advice, employees have to know what they are doing and do it right. To that end, apprenticeships deliver structured learning that maps to recognised occupational standards. Roles such as financial services administrator and paraplanner have formal apprenticeship standards that cover the specific regulatory, record-keeping and analytical skills needed in adviser firms. For employers this means recruits enter with, or quickly gain, directly relevant qualifications while on the job – reducing the time and cost of standalone training.
Employers have sometimes been reluctant to invest in training employees because they worry that they are, effectively, training future staff for their competitors. But that approach ultimately increases costs and lowers effectiveness across the sector: firms are less efficient, staff feel under-appreciated, and clients are not as well-served as they might be.
Apprenticeships help solve those problems. First, candidates – particularly school-leavers and career-changers – increasingly look for employers who will invest in their professional development. Offering a funded apprenticeship differentiates a firm from competitors, decreases early-career turnover and creates a clearer internal progression route from administration into paraplanning and, where appropriate, adviser roles. For firms struggling to recruit experienced paraplanners, an apprenticeship pathway can be the most reliable way to develop the specific technical capability you need.
Second, there are measurable operational benefits. Apprentices contribute from day one while learning, which reduces the immediate productivity hit associated with external training. The apprenticeship framework ensures apprentices gain both technical competence (learning about financial products, compliance, report writing) and softer skills (client communication, time management) that directly improve client outcomes and audit readiness. The structured assessments and end-point assessment – where applicable – give firms confidence that the learning has been independently validated.
Third, apprenticeships can upskill existing staff, which boosts retention, engagement and morale. For example, an apprenticeship programme could be used to move from an administrator role to a trainee paraplanner position.
The apprenticeship levy — the headline rules every financial advice firm should know
For firms trying to assess cost, the apprenticeship levy and funding rules determine how much support is available. Key points to know:
- The apprenticeship levy is charged at 0.5% of an employer’s annual pay bill and applies when that is above £3 million. Levy payments are collected via PAYE and show up in an employer’s digital apprenticeship service account.
In the most recent budget, the chancellor announced a few important changes:
- The government will now cover the full cost of an SME apprenticeship for any eligible candidate aged between 16 and 24. For non-levy paying firms (i.e., most small businesses) the usual model is government funding for 95% of training costs for approved apprenticeships, with the employer paying a small co-investment (often 5%), making apprenticeships an affordable training route for SMEs.
- Levy funds are currently topped up by government at 10% for employees based in England, increasing the spending power of the pot. This 10% enhancement is being withdrawn.
- At present, funds in the levy account must be used within 24 months of being credited, after which unspent amounts are removed. The chancellor also announced that the 24 month period is being reduced to 12 months so it is even more important for planning spend across apprenticeships and avoiding lost funds.
- If your firm is a levy payer but can’t use all its funds, you can transfer up to 50% to other employers — a mechanism supervisors and networks increasingly use to support smaller adviser firms or supply-chain partners. The transfer allowance has been increased recently so large employers can pass a higher share of unused funds to others; transferred funds typically cover the training and assessment costs up to the funding band maximum. This makes levy transfers a practical way for networks or groups to support training across multiple firms.
How paraplanning and adviser firms should think about apprenticeships
First, start with role mapping: align apprenticeship standards to the roles where improved capability will reduce risk or create measurable efficiency gains. Examples include client file management, report drafting, fact-find quality or suitability letter drafting. Choose the appropriate level – level 3 for many administrators, level 4 and above for paraplanners – and work with a training provider who understands financial services qualifications. LIBF is uniquely placed here as the only awarding body and training provider that can support you through the whole learner journey from start to finish including the qualifications if appropriate.
If you’re a levy payer, create a rolling plan to use your account funds before they expire, and consider whether transferring funds to a partner or local training employer could amplify your firm’s reputation and local talent pipeline.
If you don’t pay the levy, explore the 100% funding model for under 25s and the 95/5 funding model for older learners, as well as any other local incentives. Sometimes local authorities or sector bodies co-fund apprenticeships for priority skills.
Practical tips
- Measure outcomes: track time-to-competence, error rates, file audit results and turnover for apprentices versus hires that have been trained ad hoc.
- Blend on-the-job with technical study: ensure day-to-day mentors are appointed so apprentices spend more time doing (and being supervised) than studying.
- Use the levy creatively: levy transfers, group-wide training and cross-firm apprenticeships reduce per-firm cost and increase access to specialist training.
- Plan for progression: position apprenticeship completion as a step on a career ladder (from admin → paraplanner → paraplanner with technical quals → adviser support).
Apprenticeships are now a strategic tool
For administrators and paraplanners and the firms that rely on them, apprenticeships are no longer just an HR box-ticking exercise. They are a strategic tool that aligns workforce development with compliance and client-service goals, which the current levy and funding rules make financially viable for almost every firm.
Used well, apprenticeships reduce hiring risk, strengthen technical capability and create a sustainable pipeline of people who truly understand how your firm delivers advice.
LIBF has just launched its new apprenticeship pathway to support firms. Whether you’re bringing new talent into the profession, or upskilling existing employees, learners gain a recognised Level 3, Level 4 or Level 6 qualification and a structured route along which to progress.
Each pathway, whatever the level, is designed to give learners the confidence, skills, and technical knowledge they need to thrive in the sector.
Firms are fully supported from day one, giving you everything you need for a seamless apprenticeship journey.
You can find more details at https://www.walbrook.ac.uk/libf/professional-qualifications/banking-and-finance-apprenticeships/
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