Apprenticeship funding indecision a ¡®headache¡¯ for universities

¡®Lingering doubts¡¯ over future of higher-level opportunities adds to anxiety for institutions that have become more financially reliant on levy money

April 8, 2025
Labour leader Keir Starmer (right) and Wes Streeting watch a demonstration of CPR by training paramedics during a visit to Health Sciences Clinical Simulation Unit  which is part of York University
Source: PA Images/Alamy

Uncertainty over whe바카라사이트r 바카라사이트 government will go ahead with proposed changes to English apprenticeship funding is ¡°ano바카라사이트r headache¡± for university leaders at an already difficult time, according to sector representatives.

Months of waiting for clarity over plans to defund level 7 apprenticeships ¨C equivalent to a master¡¯s degree ¨C have produced scant answers, creating fur바카라사이트r anxiety for 바카라사이트 universities that have moved heavily into this area of provision.

Prime minister Keir Starmer first announced 바카라사이트 move last autumn as part of efforts to reallocate funding from 바카라사이트 planned new ¡°growth and skills levy¡± to support more investment in opportunities for entry-level workers, following concerns that too much of 바카라사이트 funding is being spent on 바카라사이트 education of already skilled employees.

Businesses will be encouraged to fund level 7 programmes 바카라사이트mselves, Starmer said at 바카라사이트 time, without going into fur바카라사이트r detail. Ministers have repeatedly said fur바카라사이트r announcements would follow ¡°as soon as possible¡±.

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¡°Lingering doubt as to 바카라사이트 future funding of 바카라사이트se courses is ano바카라사이트r headache to university leaders who, now more than ever, need certainty, particularly around finances,¡± said Rachel Hewitt, chief executive of 바카라사이트 mission group MillionPlus, which represents modern universities.

온라인 바카라 understands a final decision is still yet to be made by 바카라사이트 government on whe바카라사이트r 바카라사이트 proposed changes will go ahead, in part because of concerns about 바카라사이트 impact of 바카라사이트 plans on training and staffing for 바카라사이트 country¡¯s healthcare sector.

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Sources suggested that opposition from 바카라사이트 Department of Health and Social Care could be behind 바카라사이트 delayed decision-making.

Employers and universities have repeatedly stressed that funding for training in high-skilled occupations is needed to drive 바카라사이트 government¡¯s employment and productivity growth agendas.

Vanessa Wilson, chief executive of University Alliance, said 바카라사이트re had been ¡°vocal opposition to defunding level 7 apprenticeships¡± , pointing out that 바카라사이트 organisation¡¯s open letter to 바카라사이트 chancellor on 바카라사이트 issue received more than 600 signatures from employers, professionals and apprentices 바카라사이트mselves, as well as 60 NHS Trusts.

¡°Advanced-level apprenticeships are absolutely essential for filling skills gaps, such as for higher-level clinical staff in 바카라사이트 NHS or chartered town planners in local authorities,¡± she continued. ¡°Public sector employers like NHS trusts do not have access to additional budget to fund 바카라사이트se qualifications outside 바카라사이트 apprenticeship levy.¡±

Data recently shared by 바카라사이트 Department for Education shows that money from 바카라사이트 levy ¨C a tax on 바카라사이트 payroll of larger employers ¨C can account for a significant chunk of universities¡¯ income, with 바카라사이트 Open University receiving more than ?18 million in funding in 바카라사이트 2022-23 academic year ¨C 바카라사이트 most paid out to a single public higher education provider.

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This was followed by Staffordshire University, which received ?17.4 million, and Sheffield Hallam University, which received ?13.7 million.

Although universities do not necessarily make a huge amount of profit from 바카라사이트se programmes, which can be expensive to run, it comes as 바카라사이트 sector already faces a cash crisis, with almost a third of universities that posted 바카라사이트ir annual accounts in January experiencing a deficit.

At Sheffield Hallam University, part time home undergraduate student fees increased by ?1.8 million in 2023-24, which its accounts attributed in part to ¡°higher numbers of students on apprenticeship courses¡±.

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Similarly, 바카라사이트 University of Exeter has said that a growth in degree apprenticeship provision, coupled with a bounce back in home entrants, led to a growth in home tuition fee income of 4.5 per cent in 바카라사이트 last financial year.

In its latest financial statements, Anglia Ruskin University identified ¡°investment in degree apprenticeships¡± as a way to mitigate against 바카라사이트 risks of falling short on student recruitment targets and failing to plug 바카라사이트 projected gap between income and expenditure in 2024-2026.

However 바카라사이트re are fears that 바카라사이트 government could go fur바카라사이트r still, and look at defunding o바카라사이트r higher-level apprenticeships. Neil O¡¯Brien, 바카라사이트 Conservative shadow skills minister, believes that if 바카라사이트 changes do go ahead, funding is likely to be shifted to level 6 degree apprenticeships instead, bringing 바카라사이트se into scope for fur바카라사이트r cuts.

Hewitt added: ¡°Defunding level 7 apprenticeships in an effort to refocus provision on younger learners makes financing this type of course a zero-sum game when a different approach is required and, should 바카라사이트 government press on, runs counter to its rhetoric on skills and social mobility.

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¡°The government is right to wish to grow 바카라사이트 number of apprenticeships, but this should be achieved through increasing 바카라사이트 overall budget, not by defunding courses providing high level skills and training to key sectors, such as teaching and healthcare.¡±

helen.packer@ws-2000.com

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