Universities believe that the new Labour government can drive economic growth by focusing on higher and degree level apprenticeships.
The University Vocational Awards Council’s (UVAC) survey of its members explores the policy commitments and financial support that the new government can make to ensure that higher and degree apprentices meet the needs of employers.
84% of those surveyed believe that Labour should support the continued growth in higher and degree-level apprenticeships.
Financially, 64% of respondents believe that the new government should help universities to overcome the challenges associated with delivering degree and higher apprenticeships through partnerships with employers. They also think the government should assist them to diversify their offerings to meet the demands of a wider range of business sectors.
The research examined the impact of Labour’s Growth and Skills Levy when it replaces Conservative’s Apprenticeship Levy. This is funded by a 0.5% mandatory contribution from employers with payroll costs over PS3m.
The Apprenticeship Levy was viewed as a form of taxation by universities, but despite being criticized, especially by levy paying organisations in the UK, 60% felt that it supported apprenticeships better than Labour’s funding solution, regardless of age, level or occupation. In a move to give a boost for businesses that pay the current levy 28% thought apprenticeships for 16-18-year-olds should be funded by general taxes in the same manner as A levels T levels and AppliedGenerals.
More than three-quarters (77%) are worried that the Growth and Skills Levy of Labour could allow employers spend up to half of their payment on non-apprenticeships training, which could hamper the number of top talent entering workplaces via apprenticeships.
The majority of those who support the Growth and Skills Levy think it will improve business. 45% believe that it will provide a fair apprenticeship deal for both small and large employers in the UK. A third of respondents (32%) believe that the new Growth and Skills Levy will fund more higher and degree level apprenticeships than previous governments, and 36% think it will improve social mobility through apprenticeship delivery.
The Conservatives did not provide enough funding to cover the needs of all firms. 77% of universities felt that this was a major problem.
Dr. Mandy Crawford Lee, CEO of UVAC, commented: “Given the uncertainty surrounding Labour’s skill policy and how they will deliver on their manifesto promises, we wanted to gauge the mood among universities that are delivering degree and higher apprenticeships with employers of any size.
“Our members feel that it is vital that Labour continue to protect the future of apprenticeships, and make them available to all people regardless of age and qualification. This will ensure that a change of government does not stifle its growth. It is unimaginable to risk the funding of degree and higher apprenticeships, given how important they are for promoting social integration, strengthening the economy and addressing skills gaps across all sectors.
Our survey was a real eye opener into the future of higher and degree level apprenticeships under the newly-elected government. We’d encourage Labour to take our findings, as well as the views from both universities and employers who are responsible for providing them.
Visit www.uvac.ac.uk to find out how UVAC helps universities and employers deliver higher and degree apprenticeships.
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