Government apprenticeship plans are ‘a major blow’ to construction

Government plans to restrict levy funding of level 7 apprenticeships will widen the skills gap, according to the University Vocational Awards Council (UVAC).

The funding plans will also hinder the economy and have a significant financial impact on construction firms, UVAC warns in a new report.

The report, Apprenticeships – a system built for adults, explores the importance of training apprentices of all ages to meet future skills needs. 

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

Mandy Crawford-Lee, chief executive at 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.”

Crawford-Lee added that the government’s current focus is on economic growth and addressing social mobility, so “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,” she said. 

“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 for Educational Research reveal that 90% of roles within firms across sectors such as construction will require higher-level skills by 2035.

Charlynne Pullen, principal research fellow at Sheffield Hallam University, 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.”

Crawford-Lee added that UVAC welcomes any attempts to engage more young people with apprenticeships through the government’s plans to introduce paid ‘foundation’ apprenticeships, but insisted that this should not be at the expense of level 7 apprenticeships and the 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,” she said.