Finance firms face £214m bill as apprenticeship funding cut – UVAC

Government funding cuts to Level 7 apprenticeships for over-21s will leave finance companies with an extra £214m bill for training costs, according to research from the University Vocational Awards Council (UVAC). 

Level 7 apprenticeships, which are equal to a Master’s degree, are mostly taken up by those aged over 21, with 89% of starts in this bracket.

The research found that apprenticeship starts at this level have grown 13% year-on-year over the past three years, with a 5% increase in the last 12 months. 

Additionally, a report by the National Foundation of Educational Research previously found that 90% of jobs across all sectors will need higher-level skills by 2035. 

The cuts come at a time when demand for these apprenticeships is rising.

Mandy Crawford-Lee (pictured), CEO for the UVAC, said: “The government’s policy to remove vital levy funding – that is supporting nine in ten Level 7 apprentices – is a major blow to finance employers and will leave them facing both huge training bill costs and a skills shortage headache.

“This funding black hole is at a time when Level 7 apprenticeships have been growing in popularity year-on-year and are critical to driving wider economic growth. 

“They’re also proven to enhance social mobility – giving individuals from underserved communities a clear career pathway, access to higher education and the skills to achieve their full earning potential in senior-level positions.”