A coalition of employers and apprentices spanning sectors including healthcare, science, construction, manufacturing, creative, business and local government have written to the Chancellor to express deep concern over the planned defunding of level 7 apprenticeships
Over 600 signatories have backed the letter, including representatives from over 60 NHS Trusts, 29 local authorities and sector representative groups such as the CBI, GAMBICA, RIBA and The Royal Town Planning Institute.
The signatories argue that level 7 apprenticeships are integral to recruitment, retention and skills strategies across a range of essential sectors.
The government has indicated that it plans to prevent employers from using the Apprenticeship Levy to fund level 7 apprenticeships – the highest level of apprenticeship. All employers with a turnover of over £3 million are charged at 0.5% of their annual pay bill for the Levy, which will soon become the Growth & Skills Levy. Part of what is raised through the Levy is used to fund apprenticeships in employers of all sizes, including SMEs. Employers argue the levy should be used to fund the qualifications that best meet their skills needs, including level 7 apprenticeships.
Many of the sectors which rely on level 7 apprenticeships are identified as essential to growing the UK economy in the government’s ‘Invest 2035’ industrial strategy green paper. The letter also highlights that these apprenticeships are vital for training clinical staff and managers in the NHS and filling crucial skills gaps in local government and public services. Many large employers such as NHS Trusts say they do not have the budget to fund these qualifications outside of their levy contributions.
According to the Office for Budget Responsibility (OBR), contributions employers make through the apprenticeship levy are forecasted to be £800 million higher than the apprenticeship programme budget in 2024/25 – more than three times the cost of level 7 apprenticeships in 2023/24. The coalition argues that these funds should be reinvested strategically into the skills system to support economic growth, including funding level 7 apprenticeships.
The coalition also calls for the Department for Education and Skills England to publish their rationale and evidence-base for the decision to cut funding for level 7 apprenticeships and seek expert analysis on the value of these apprenticeships to the UK’s skills base and economy.
Vanessa Wilson, CEO of University Alliance said:
“As part of a broad coalition of apprenticeships experts spanning the education, healthcare, architectural, creative and business sectors, we are calling on the Chancellor as one voice not to defund level 7 apprenticeships.
If the government were to defund level 7 apprenticeships it would have far-reaching effects across different industries and unintended consequences for multiple planks of the government’s skills, opportunity and growth agenda.
With over 600 signatories, the strength of feeling from a diverse set of professionals on the same issue is irrefutable. In particular, those working within NHS trusts are concerned about what this means for the development of high-level skills for roles that will be essential to our health and social care workforce.
We urge the government to rethink this decision and carefully consider the impacts of shifting levy payments away from high-level skills development, and instead increase the overall apprenticeship budget to support these vital level 7 qualifications, so we can build and sustain a robust, highly-skilled workforce that will drive the UK’s innovation and growth for years to come.”
Steve Brambley, Chief Executive, GAMBICA said:
“Our industrial members cover a wide range of sector, size, location and activity. We have levy-paying medium and large companies as well as many small businesses that are exempt. However, across the board they are all seeking skilled engineers, scientists, technicians and rely on strong management and leadership to develop and grow their business. They recruit and develop at all levels and all ages, including Level 7. The risk is that reduced capacity for provision would impede the opportunity for potential apprentices from all sectors. Reducing funding for Level 7 Apprenticeships would lead directly to a reduction in their uptake and provision, perpetuating the leadership and management skills gap and hampering one of the key government missions: Growth.”
Prof. Malcolm Skingle, Chair, Science Industry Partnership, said:
“The science industries are a high-growth sector, but we need government to work with us and make it easier, not harder, for us to develop the skills we need. As an industry, we must be able to direct the funds we pay through the apprenticeship levy in the way which best supports growth in our sector. Level 7 apprenticeships are an important part of that picture and are central to many organisations’ recruitment, retention and upskilling strategies for employees at all levels. Defunding these important qualifications without thoroughly consulting the employers who best understand the country’s skills needs is a serious misstep.”
Dr Victoria Hills, Chief Executive, Royal Town Planning Institute said:
“As the Professional Body for Town Planners, the Royal Town Planning Institute is deeply concerned with the proposed Government reforms to the funding of L7 apprenticeships. The Chartered Town Planner degree apprenticeship is an L7 apprenticeship which provides an excellent pipeline of qualified town planners into an already under-resourced sector which will be significantly impacted by the suggested funding reforms”.
Letter
Read the letter sent to the Chancellor
Testimonials
Over 400 signatories to the letter to the Chancellor on the defunding of level 7
apprenticeships also provided a testimonial on the importance of level 7 apprenticeships.
Read the full list of testimonials advocating for level 7 apprenticeships here.
This letter was coordinated by University Alliance, with support from a wide coalition of representative groups and organisations.
