The government’s forthcoming apprenticeship reforms will deter many employers from upskilling their workforce via higher and degree apprenticeships, according to 69% of the nation’s universities. 

Research by the University Vocational Awards Council (UVAC) of its university members across the UK, examines what impact future changes, such as the government’s new Growth and Skills Levy, will have on firms from a funding, diversity, skills and productivity perspective. 

Dr. Mandy Crawford-Lee, chief executive for UVAC commented:

 “Our research has really lifted the lid on some genuine concerns around the government’s planned Growth and Skills Levy, its announced level 7 funding restrictions and introduction of foundation apprenticeships. Many universities are worried about the impact these reforms will have on employers which rely heavily on higher and degree apprenticeships to address skills gaps, drive business growth, promote diversity and develop those in senior and technical roles.”

The study reflects the mood of pessimism surrounding reforms, with 45% believing the new levy will be more complicated for employers to understand and 30% claiming it will increase the levels of bureaucracy and administration associated with the previous system.

One of the few stand-out positives from the study are that 39% respondents claim the planned reforms to provide shorter apprenticeships will help those employers that can’t commit to a longer, 12-month minimum apprenticeship

With higher and degree apprenticeships critical to helping firms develop future managers, business leaders or fill specialist and senior-level roles, 81% were concerned the new levy will reduce the number of employers training older apprentices aged over 25. From a social inclusion perspective, 55% felt it will lead to a decline of new apprentices from underserved communities. 

Although 72% of respondents felt employers should do more to attract younger apprentices, 89% felt the government’s other proposed reform to establish ‘foundation’ apprenticeships for younger people will be at the expense of higher and degree apprenticeships. 

Dr. Mandy Crawford-Lee, ends

“We wholeheartedly support Labour’s drive to engage more younger people in apprenticeships, but this must not be at the cost of growing the number of programmes at higher and degree level. We’d therefore urge the government to ring-fence the funding of apprenticeships across all ages and levels and even invest more given that it has outlined its commitment to growing the UK economy and addressing the skills gap.”