The University Vocational Awards Council (UVAC) is urging the government to ringfence its planned Growth and Skills Levy funding of higher and degree apprenticeships, to tackle the rising skills gap impacting employers.
Latest figures* reveal that employers are more dependent than ever on funded apprenticeship programmes between levels 4-7, which have experienced a 9% increase in year-on-year starts in the last three years.
Level 7 apprenticeship starts have seen the highest increase (13%) in the same three-year period, closely followed by Level 4 (12%), Level 5 (10%) and Level 6 (3%).
A member survey conducted by UVAC, the higher and degree apprenticeship voice for over 80 universities, also revealed that 42% of respondents felt the Growth and Skills Levy will make it harder for businesses to plug skills gaps.
Around a third (30%) claim it will bring more bureaucracy and administration for employers, whilst 48% believe it will restrict higher and degree apprenticeship provision and cater for less sectors.
The shortage of skills needed across all sectors has never been higher. Research by The Open University and British Chamber of Commerce revealed that the UK skills gap remains stubbornly high – compromising productivity and preventing businesses from competing, nurturing talent and driving growth. For example, it found that 64% of employers are not confident of applying either artificial intelligence or green technologies across their business.
Dr. Mandy Crawford-Lee, chief executive for UVAC, commented: “With employers and the wider economy so reliant on higher and degree apprenticeships to plug skills gaps, develop a sustainable talent pipeline or fill specialist roles, we’re urging the government to protect Growth and Skills Levy funding in this area. Whilst apprenticeships are not the only solution, they provide an in-work route to the professions and advanced practice careers up to and including post-graduate and master’s degree levels.
“Given that recent cuts to levy funding of Level 7 apprenticeships in January next year will also cost employers around £214m in additional training costs, there’s no need for the government to further deepen the skills void.
“In addition to protecting funding, we feel the focus now should also be on defining the government’s intentions around its plans to provide greater flexibility to employers. It feels like businesses are in a state of limbo at the moment. The government appears to be prioritising lower-level apprenticeships designed for people not in employment, education or training (NEETs), but not providing the clarity or reassurance to those businesses that need apprentices across all ages to meet the critical skills challenges they face.”
