The cost of high-level apprenticeships doubles within five years

In the last five years, spending on high-level apprentices has doubled. This is equivalent to earning a master’s degree.

In response to a written question by Conservative MP for Mid Leicestershire Peter Bedford, the Department for Education has released figures on the apprenticeship spending.

Janet Daby (Labour MP for Lewisham East, Minister for Children, Families and Wellbeing) provided a breakdown on how the apprenticeship budgets have been spent between levels 4 to 7 since 2019/20 academic year.

In 2023/24, the figures show that PS103million was spent on apprenticeships at Level 7 (Masters level). In 2019/20, this represented 5% of the budget for apprenticeships. By 2023/24 it was 9%.

In 2023/24 the level 6 apprenticeships, which are equivalent to bachelor’s degrees, will account for 15% of all apprenticeship spending, up from just 6% in 2019.

In the beginning of this year, it was announced that shorter and more flexible apprenticeships would be introduced. This would allow for up to 10,000 additional apprentices to qualify every year.

The government has indicated that it may remove certain Level 7 apprenticeships as they are not eligible for levy funding. This would allow it to shift resources toward people who train at lower levels.

Shazia Ejaz is the director of campaigns at the Recruitment and Employment Confederation. She said that increasing spending on higher level apprenticeships could result in entry-level routes not being offered.

She said, “It’s time to rebalance our system.” The young people must have real opportunities to enter vital sectors like health, social services, and construction. These are areas that desperately need skilled workers. The status quo does not work.

The government must act swiftly and decisively to fulfill its manifesto promise of a flexible growth and skill levy. We need to create a system which provides opportunities for young people, while also ensuring that employers and economic needs remain at the forefront of funding apprenticeships and skills.

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