Introduction: Significant Updates to Functional Skills Requirements

The government has introduced Relaxed Functional Skills Rules for Apprentices, as outlined by the DfE. Under these revised guidelines, adult apprentices (aged 19 and over) may no longer need to pass Functional Skills English and maths to complete their apprenticeship. While these qualifications remain mandatory for 16–18-year-olds, they are now optional for adult apprentices.

This regulatory change will have a considerable impact on apprenticeship providers, leading to a reduction in the number of learners taking Functional Skills exams. Consequently, maintaining in-house testing facilities may become financially impractical due to decreased exam participation.

Impact on Training Providers

Fewer Exam Registrations

With fewer adult apprentices required to take Functional Skills exams under the Relaxed Functional Skills Rules, training providers will likely see a decline in exam bookings.

Higher Operational Costs for In-House Testing

Operating in-house exams involves fixed costs, including exam board fees, administrative staffing expenses, and per-exam charges. With declining exam participation, maintaining internal testing may no longer be a viable option. A more cost-efficient alternative is adopting a pay-per-exam service such as Pass Functional Skills (PFS).

Cost-Effective Solution: Pay-Per-Exam Model with PFS

Switching to a pay-per-exam model like PFS helps providers eliminate unnecessary expenses, removing the need for:

  • Annual exam board fees
  • Salaries for dedicated administrative staff
  • Overhead costs associated with managing in-house exams

Instead, providers only pay when an exam is required, ensuring compliance while keeping expenses manageable.

Conclusion: Adapting to Functional Skills Rule Changes

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

By adopting a pay-per-exam approach, providers can effectively navigate these changes, reduce costs, and optimize their Functional Skills assessment processes.

Find Out More

Contact Pass Functional Skills today at 020 4574 9155 to explore an affordable, fully managed Functional Skills exam solution. Alternatively, complete the contact form below, and one of our specialists will reach out to discuss how the Relaxed Functional Skills Rules for Apprentices may impact your organization.