Employers have criticised the announcement today that, starting in January 2026, new Level 7 Apprentices will not be eligible for funding unless they’re under 22.
NHS Employers warned the Department for Education of the potential consequences for the health system when the idea to scrap funding for Level 7 apprenticeships was first raised in the fall.
Danny Mortimer said this morning that the NHS provided one third of the apprenticeships in public sector. The levy they pay to the Exchequer is reinvested in programs across our workforce.
The NHS will be concerned about the end of funding for Level 7 Apprenticeships for those over 21. This route has been an important way to invest in clinical staff who are experienced and want to learn more in order for them to advance in their nursing or allied health professions.
NHS Employers asked for an exception for “strategically vital qualifications”. They are concerned that this decision will create an additional financial burden on the NHS.
He added that “the 10-year plan, along with the workforce plan, will establish ambitious priorities for transforming healthcare.” This decision runs counter to our aspirations. We look forward to seeing the chancellor find other ways to support education.
Lizzie Crowley is a senior skills advisor at the CIPD. She said that restricting government funding to Level 7 Apprenticeships for those between 16 and 21 years old will not increase youth participation in a meaningful way, as fewer than 1/10 of apprentices at this level are within this age range.
This blunt approach could undermine the ambition and breadth of the apprenticeship program. We have previously advocated for a nuanced approach in managing the costs of higher-level apprenticeships. For example, by reducing subsidies for older learners.
Senior Leadership Training
Petra Wilton is the director of policy for the Chartered Management Institute. She said, “While it’s a shame that funding has been cut so drastically for Level 7 Apprenticeships, we must now focus on supporting those who are already enrolled in the programmes or preparing to begin them.” This includes people working in public services like the NHS, education, and police.
The government’s decision restricting Level 7 funding to under-21s does not address UK’s continuing skills gap in managerial capability.
She stated that the decision virtually eliminates all funding for apprenticeships in senior leadership and that early career learners are not at a stage of their careers where they can undertake senior management training.
She continued: “Independent studies have shown that Level 7 Senior Leader apprenticeships are key drivers of economic growth and social movement in the UK, generating millions of pounds. The majority of those who are eligible for free school meals or who were the first members of their family to attend university, are represented in these apprenticeships. These initiatives raise aspirations for families and provide tangible benefits.
We are concerned about the impact of this decision on UK economic growth, given the uncertainty surrounding the Employment Rights Bill and the increasing costs for employers.
We want to work with the ministers in a constructive way to ensure that the apprenticeship system, and the wider skill agenda can deliver higher-level skills UK employers have told us they need. To grow the economy.
“With Level 7 funding cut, other routes need to continue to provide those advanced skills that our economy relies on. This means that the Growth and Skills Levy must be flexible to allow workers of all ages and stages to develop their skills. “The much-needed focus of young people must go hand in glove with a commitment towards the millions of people in the UK who are already working.”
Growth and Skills Levy
Neil Carberry, chief executive of the Recruitment and Employment Confederation said: “A better targeting of funding on young people is crucial to protect their paths into work and offers more stability and clarity in apprentice policy.”
“Yet, the changes announced today don’t progress us on our real challenge which has driven apprenticeship opportunities down for young workers – the poor design of apprenticeship levy.
“Fixing levy and making real progress with a new Growth and Skills Levy is a huge task, but it offers a great reward for both employers and employees. The lack of progress in this area is increasing frustration among firms. “A greater embrace of short, modular courses, collaboration with employers, and a focus on maximizing talent is necessary for industries ranging from healthcare to construction.”
Alan Vallance is the chief executive of the Institute of Chartered Accountants in England & Wales (ICAEW). He agreed that the decision to eliminate Level 7 funding for those over 21 years old will be a big blow to thousands of people who rely upon this route to highly-skilled jobs which support the economy.
The average age is 22
He said that the average age of a Level Seven ICAEW Apprentice is 22 years old, and that the unintended effects of a policy which strips funding from the cohort will have a profound effect on firms, the pipeline of skills and the health and well-being of the economy.
He said that while he understood and supported the idea of a concession for age, the effect of the 16-21 exemption would be a bias in recruitment toward school leavers who follow a more lengthy path to becoming a chartered accountant.
We are concerned that this decision will limit the growth of the UK economy. This will not only impact recruitment in the professional services but also increase the likelihood of UK companies choosing to outsource work.
It also goes against the government’s commitment towards its growth agenda. This is especially true after the new industrial policy included professional and business service as a growth-driving industry. Apprenticeships are crucial to closing the skills gap and boosting economic growth. They must be protected at all costs.
He stated that the institute would work closely with employers, training providers, and apprentices to help them navigate through this period of transition. The institute is also committed to maintaining an open dialogue with Skills England, as well as with employers, to protect access to talent.
“However our position remains the same that an exemption for ages 18-25 would be a good compromise and support the government’s larger objective of growth. We urge the government, to monitor these changes closely through the lense of economic growth in order to determine if they are effective after a year.
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