Data on level seven apprenticeship changes...

Through his conference speech and an accompanying press notice a couple of weeks ago, the PM signalled big changes in the apprenticeship space.

The strategic intent is to recentre apprenticeship investment on young people - including through the introduction of foundation and shorter apprenticeships.? It is easy to see why Government might want to do this; apprenticeship starts amongst those aged 16-24 have reduced from 220k in AY18?to 177k?in AY24- whilst starts amongst those aged 25+ have increased from 155k?to 161k over the same period.? And Government does not, right now, really, have another work-based offer for young people.

The mic drop news was that, to make space for the above, and the gradual inclusion of non-apprenticeship programmes in the new growth and skills levy, employers will be asked to fund "more of their level seven apprenticeships... outside the levy."? This canny drafting leaves a lot tbc, including most importantly which level seven apprenticeships will and will not continue to attract full levy funding; and, whether those which do not will attract any levy funding at all...?

The word on the street (we know people on the actual streets aren't talking about levy reform, but you know what we mean) is that level seven apprenticeships in professional service / professional qualification areas are most vulnerable.?

Though we know that all providers with substantial level seven provisions will be feeling pretty queasy until the Department provides more detailed advice on what's to come.??

We've done a little bit of analytical work to explore possible implications of the change...

• 194?providers supported level seven apprenticeship starts in AY23.?
• Of those 194?providers, 24?supported more than 100 level seven starts in AY23.
• Within that smaller group, level seven starts accounted for more than 30% of starts for 13?providers.
• Four?of the providers for which level seven accounted for more than 30% of starts were universities.
• 163?providers supported level seven starts in the business, administration and law?'sector skills area' (SSA) which we presume most vulnerable.
• Within that group, level seven starts in the business, administration and law?SSA account for more than 40%?of all starts for 22 providers...?
• ... Six?of which are universities; and another two of which are specialist providers with giant exposures to the change.

We've anonymised the data in the chart below, which shows all providers with >100 level starts in AY23.? If you're interested in how the withdrawal of funding at level seven might play out, and what it might mean for your organisation, drop us a line.? Our market experts would be delighted to chat.