What's Happening?
Businesses are being advised to prepare for the withdrawal of funding for level-seven apprenticeships starting January next year. This change will affect apprentices aged 22 or over, with resources redirected to lower levels where the government believes they will have a greater impact. Industry experts warn that this could negatively impact specialist roles and training, particularly in sectors like construction that rely on these apprenticeships for leadership skill development. Steven Hurst from Arden University highlights the importance of acting quickly to utilize current funding opportunities before the December deadline. Employers are encouraged to identify candidates within their workforce and prioritize recruitment efforts while funding is still available.
Why It's Important?
The shift in funding priorities could widen existing skills gaps and exacerbate workforce shortages, particularly in specialized fields. Employers may face increased training costs, estimated at £214 million, due to the funding cuts. This change could also hinder social inclusion and economic growth, as nearly 90% of level-seven apprentices are aged 22 or over. While the government has proposed greater flexibility under a new growth and skills levy, details are yet to be finalized, leaving firms uncertain about future training budgets. Organizations that proactively plan can mitigate these risks and strengthen their future position.
What's Next?
Construction firms are advised to maintain communication with local universities and apprenticeship providers to explore available opportunities. Employers should consider alternative training programs, such as level-six apprenticeships, which still offer high-quality training and address workforce diversity and retention goals. The government is expected to announce further details about the new levy, which could provide more flexibility in training options.
