The Government has confirmed that it will “refocus” training from higher-level apprentices and remove levy funding to people over 21.
The reforms announced today (27th May) stated that employers would only be allowed to use the Apprenticeship Levy from January 2026 to fund Level 7 courses (Master’s level), for those who are already apprentices or 16-21 years old, because funding is targeted towards lower levels of training.
The new measures, which are backed up by a record budget of PS3bn for apprenticeships, will provide young people with the opportunity to pursue careers that are needed in this country. An additional 30,000 apprentices will be trained during this parliament.
Bridget Phillipson, Education Secretary, said: “An educated workforce is key to driving the economy forward. Today, we are supporting the next generation, giving them more opportunities to earn a living, learn a skill, and succeed.
When we invest in the skills of young people, it is an investment in a shared and stronger economic future. We create opportunities as part our Plan for Change. Everyone has a part to play in creating a strong economy. We take our responsibility very seriously and are providing more opportunities for employment. Now it’s up to the young people to seize these opportunities.”
As announced in ‘s immigration white paper, the measures include a 32 percent increase in the Immigration Skills Charge. This will provide up to 45,000 more training places for the domestic workforce to improve their skills and reduce the reliance on migrants in priority sectors.
The number of apprenticeships at higher levels more than doubled in the last five years. According to a Written Answer given last month to Parliament, in 2023-24 24% of all funded courses will be at Level 6 or 7. This compares to just 11% in 2005.
Neil O’Brien said, “The decision to abolish higher apprenticeships will cause damage to the public service, especially the NHS.” This will make it difficult for young people to get into the professions if they don’t attend university.
Danny Mortimer of NHS Employers wrote a Letter in November to Baroness Jacquismith, the Skills Minister, stating that clinical degree apprentices were a key part of NHS’ plan for attracting and developing staff to become registered nurse and allied healthcare professionals.
He wrote: “Our members are concerned that the changes being considered now for higher-level apprentices (especially at Level 7 and to any changes to Level 6), will weaken our ability to provide essential clinically-based apprenticeships.”
The Department for Education will launch 13 new construction courses at Level 2 for adults from non-devolved regions under the Free Courses for Jobs Scheme, and provide PS14 million in adult skills funding for devolved area construction for the following academic year. The Department for Education expects to support 5,000 more adult learners.
The government will also invest PS136 million in Skills Bootcamps for a variety of priority sectors between 2025 and 26 to provide training to more than 40,000 learners. It will also spend PS100 million in four years on expanding Construction Skills Bootcamps. In September, ten technical excellence colleges specializing in construction skills will open.
The announcement today follows a dramatic drop in the number apprenticeships started over the last decade. Data from the Office for National Statistics showed that as many as 1 in 8 16-24-year-olds were not in education, employment or training.
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