The Government has announced [24 September 2024] a new growth and skills levy proposal which would replace the existing apprenticeship levy and include new foundation apprenticeships. To fund this, they have indicated that businesses will need to fund more of their level 7 apprenticeships outside of the levy.
Professor Dame Karen Holford, Chief Executive and Vice-Chancellor of Cranfield University, responds to the proposed changes:
“We have a world-leading education system in the UK that I am passionate about, as it opens up opportunities that can be truly transformative.
“Apprenticeships are an important part of that landscape, and I’m a big supporter of these at all levels because I know, from my own experience, the positive impact they have on individuals and industry.
“Cranfield works with over 100 employers on level 7 apprenticeships, which are an essential part of filling skills gaps, improving productivity and contributing to business success.
“Restricting the use of levy funds for higher-level apprenticeships will have unintended consequences and risks damaging the Government’s delivery plans for public sector reform and economic growth. The perception that higher-level apprentices are taking away opportunities for apprenticeships at other levels is not the case.
“Cranfield University is a large and successful provider of degree apprenticeships, with programmes in engineering, IT, sustainability and management. These apprenticeships not only meet the skills and leadership needs of businesses, but they also provide life changing opportunities to learners.
“The Government have said that they are moving forward with a consultation on the implementation of the growth and skills levy over the Autumn. We will work with employers to respond to this, and robustly explain the benefits that higher-level apprenticeships bring.”
Until the outcome of the consultation and the formal Government response, the existing apprenticeship system remains in place, and we would urge any employers or potential apprentices interested in a Cranfield apprenticeship to speak to us to find out more. There is no impact on people currently completing a higher-level apprenticeship programme.