Published by University Alliance December 12, 2024

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 see 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.  

Read the full letter to the Chancellor here