New research shows that changes to funding for Level 7 apprenticeships could cost UK employers – many from the construction industry – around £214m in additional training costs.
The government’s decision to cut levy funding for Level 7 apprentices aged over 21 will come into effect from January 2026.
With 89% of Level 7 apprentices aged over 21, research from the University Vocational Awards Council (UVAC), highlights the impact funding cuts could have on the skills gap, as well as hindering social inclusion and economic growth.
The data from UVAC reveals that year-on-year Level 7 apprenticeship starts have risen by 13% in the last three years, and 5% in the last 12 months.
In addition, the National Foundation for Educational Research previously found that 90% of roles within firms across all sectors will require higher-level skills by 2035, highlighting how employers are increasingly dependent on degree apprenticeships at Levels 6 and 7.
Mandy Crawford-Lee, chief executive for UVAC, said: “The government’s policy to remove vital levy funding – that is supporting nine in 10 Level 7 apprentices – is a major blow to construction employers and will leave them facing both huge training bill costs and a skills shortage headache.
“This funding black hole is at a time when Level 7 apprenticeships have been growing in popularity year-on-year and are critical to driving wider economic growth.
“They’re also proven to enhance social mobility – giving individuals from underserved communities a clear career pathway, access to higher education and the skills to achieve their full earning potential in senior-level positions.
“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’.”
‘Disappointing’ policy
Crawford-Lee added that removing funding for Level 7 apprentices aged over 21 “indicates to us that the government is unfortunately not looking to prioritise the career and skills progression of employees at every stage of their working life”.
“It’s disappointing that the government places such little emphasis on the link between skills and productivity,” she said.
“We simply don’t believe that reducing Level 7 funding eligibility will make lower-level apprenticeships more attractive to construction employers – or, more importantly, reduce the number of young people not in employment, education or training (NEETs).
“It would seem that tackling NEETs is now the government’s policy priority at the expense of developing the skills provision needed for a highly skilled, world-beating economy.”
This is just typical of a Labour Government, when the economy needs a boost, which includes increased employment & skills, what do they do, withdraw the funding at level 7 Apprenticeships, denying businesses highly skilled staff, so desperately needed in the 21C! So much for our Angela’s 1.5m homes! You couldn’t make it up!
I find this article misleading & jumping on the bandwagon being portrayed by Universities who are struggling for funding.
Having worked in one of the UK’s leading built environment apprenticeship degree level providers fro many years the numbers of Level 7 Bulit Environment apprenticeships are limited. We only had the MArch & Planning, both are loosely construction related. The majority of our degree apprenticeships were ate levels 4 & 6, so this article is misinformed.
For clarity one of the reasons level 7 funding is being dropped is because the system has been abused by employers using their L7 funding to put staff already in senior positions through a L7 qualification to use their levy funding. Caught red handed with their fingers in the till.
This is not what the funding was intended for. So whilst I don’t support much this government has done. This I agree with.
A system spoilt for the majority by a few who played the system.
My former employer is guilty as charged of having used the funding in exactly the way I described above.
Please try not to mislead your readers with BBC like misinformation