Research shows that government cuts to apprenticeship funding for over-21s will cost UK employers £214m in additional training costs, with hospitality companies among those most affected.
The latest data from UVAC reveals that year-on-year Level 7 apprenticeship starts have risen 13% in the last three years and five percent in the last 12 months alone, underlying their importance to many businesses across the UK.
Level 7 apprenticeships, which are the equivalent to a Master’s degree and proven to enable hospitality companies to upskill and develop future managers, business leaders or fill specialist roles, comes at a time when they are increasing in popularity.
In addition, the National Foundation of Educational Research had previously found that 90% of roles within firms across all sectors will require higher-level skills by 2035, highlighting how more employers than ever are dependent on degree apprenticeships at levels 6 and 7.
Dr. Mandy Crawford-Lee, chief executive for UVAC, commented: “The government’s policy to remove vital levy funding that is supporting nine in ten Level 7 apprentices is a major blow to hospitality businesses and will leave them facing both huge training bill costs and a skills shortage headache.
“This new policy ultimately feels like a contradiction to Labour’s Industrial Strategy, where it insists there will be ‘no glass ceiling on the ambitions of young people in Britain.”
Although government spending on Level 7 had stagnated under the previous government over the last three years, it still accounted for around 10% of the Department for Education’s overall apprenticeship budget.
Dr. Mandy Crawford-Lee, added: “Removing funding for those Level 7 apprentices aged over 21 indicates to us that the government is unfortunately not looking to prioritise the career and skills progression of those working in hospitality at every stage of their working life.
“It’s disappointing that the government places such little emphasis on the link between skills and productivity.”
