Government’s new degree apprenticeship funding plans are a major blow to construction firms

The government’s new plans to restrict levy funding of level 7 apprenticeships will widen the skills gap, hinder the economy and have a significant financial impact on construction firms needing to develop future managers, business leaders or fill specialist roles.

The warning comes from the University Vocational Awards Council (UVAC) which has produced a new national report in partnership with Sheffield Hallam University to explore the critical purpose of training apprentices of all ages to deliver jobs of the future.

The report also explores the importance of older apprentices to employers in a shifting labour market and the impact higher and degree apprenticeships, such as those at level 7, have on firms from a growth, employee retention, skills and productivity perspective.

Dr. Mandy Crawford-Lee, chief executive for UVAC commented: “The government’s policy aims to reduce levy funding of level 7 apprenticeships is a major blow to construction employers, the wider economy and the skills development of both senior level staff and those in specialist roles such as technology.

“It will largely affect those businesses with apprentices aged over 25 that rely on the current financial support to meet the cost of upskilling employees to be effective managers, business leaders or occupy more technical roles via level 7 and master’s degree apprenticeships.

“Given this government’s current focus is economic growth and addressing social mobility, it makes no sense to introduce policy that could undermine it. Degree apprenticeships at level 7 are proven to enhance social mobility, by giving individuals from disadvantaged backgrounds the opportunity to follow a pathway into the professions, gain access to higher education and also achieve higher-paid, senior-level positions further in their career. Many people from underserved communities could now not realise their full earning potential as a result and miss out on opportunities to become highly skilled in their chosen profession.”

Findings from the National Foundation of Educational Research reveal that 90% of roles within firms across sectors such as construction will require higher-level skills by 2035, highlighting how the wider economy and more employers than ever will be dependent on degree apprenticeships at levels 6 and 7, rather than just those at lower levels.

Charlynne Pullen, principal research fellow at Sheffield Hallam University, who has just produced the ‘Apprenticeships – a system built for Adults’ report, commented: “The current apprenticeship system has significant benefits for adults and their employers, at all levels and all stages of a career. Young people, and those with less work experience, need additional support, and new foundation apprenticeships are a welcome recognition of that. But we should not lose sight of the support needed for adults to progress, to upskill, to reskill, and to learn new skills at a range of points in their career.”

Dr. Mandy Crawford-Lee added: “We welcome any attempts to engage more young people with apprenticeships through the government’s plans to introduce paid ‘foundation’ apprenticeships, but this should not be at the expense of level 7 and the essential levy funding support needed by construction employers. The government needs to prioritise the career and skills progression of employees at every stage of their working life.”

The ‘Apprenticeships – a system built for adults’ report is now freely available to view online at www.uvac.ac.uk.

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