Published 27 September: Update following the announcements made at this week’s Labour Party Conference.
Last month we published an article on the priorities of the Labour government on skills (here). With this week’s announcements, priorities are starting to translate into policy. There is still plenty we do not know but in this update we cover:
- The changes
- What they mean for employers and apprentices now
- Why they are happening
- What the changes may mean in practice
- Why it is so important that the Department for Education makes the right decisions on level 7 apprenticeships.
FE Week have published a good summary. Other recommended reading is the government press release, and this report from Skills England, both published to coincide with the Prime Minister’s conference speech.
On apprenticeships, three changes were announced:
- The creation of new “foundation apprenticeships”
- Funding for apprenticeships that take less than the current minimum of 12 months
- Businesses will be asked to fund more of their level 7 apprenticeships outside the Apprenticeship Levy.
No change for apprentices currently on programme
First, some reassurance. There will be no changes to funding for apprentices currently on programme or their employers. These apprenticeships will continue to be funded as agreed at the outset.
No immediate changes for employers
Our advice to employers is not to “save” Levy funds or pause apprenticeship plans – for now, there is no change. If you have or are planning to implement an apprenticeship programme that will help you grow your business, there is no logic in delaying. Impactful apprenticeship programmes are, and will remain, a cornerstone of government skills policy.
Why are the changes happening?
The Department for Education’s apprenticeships budget is almost fully spent, but the government has promised that funding will also be found for other skills priorities. The Skills England report explores the detail, but the challenges include:
- The growing number of young people not in employment, education or training (so-called NEETs)
- A fall in the number of entry-level apprenticeships offered to young people
- A need for more flexibility to address skills shortages, especially in priority areas.
Delivering these outcomes requires money. Whilst our view is that the Apprenticeship Levy can generate sufficient funds to deliver the priorities without diluting an “all age, all level” apprenticeship offer (see our last update), the government wants to free up cash. This is going to come from “de-funding” some but not all the 66 apprenticeship standards at Level 7 (master’s degree level). There is a perception that some of these apprenticeships are being used as a development vehicle by people already in high paid/senior roles, where there is benefit to the individuals and their employers but, arguably, public money could be better spent on the priority areas.
What will the changes mean in practice?
Creating new foundation apprenticeships will take time. It seems unlikely that any will be launched before August 2025.
In principle, we are positive about more entry-level programmes. In our experience, some school and college leavers and NEETs would benefit from a new “first rung” on the apprenticeship ladder, before progression to higher level apprenticeships. For employers it could widen access to talent and create a gentler, lower risk, progression pathway.
It is unclear what shorter programme lengths with mean in practice. The minimum programme duration of 12 months, combined with the minimum weekly study (excluding holiday) of 6 hours, means that the legal minimum off-the-job learning for all apprenticeships is 278 hours. This amount of study is effectively a proxy for the size of the minimum skills gap required for someone to be eligible for an apprenticeship.
It would be possible to reduce the 12 month period without changing the 278 hour requirement. If so, we would be in favour. However, a dilution of the amount of training required (and therefore the size of the skills gap to be filled) risks diminishing the value of apprenticeships. Surely, such a skills gap would be better filled via commercial training or, if it a priority area, from non-apprenticeship training funded via the Growth and Skills Levy?
On Level 7, we understand that Skills England will be engaging with employers and training providers to discuss areas where funding for level 7 apprenticeships will be restricted, with a decision will follow in due course. We also understand that level 7 apprenticeships that are no longer eligible for levy funding will continue to be available for employers to fund (for new starters; existing apprentices are unaffected).
The reference to “levy funding” leaves open the possibility that non-levy payers (i.e. smaller employers), who already make a 5% contribution towards training costs, might be treated differently. “Restriction” suggests that reducing or limiting (as well as removing) funding is possible in some cases.
The key question is which level 7 apprenticeships will be impacted. Here, there is an opportunity and a need for employers, education providers and apprentices to make their views known, with some urgency, to the DfE.
Making the right decisions on Level 7 apprenticeships
At Damar, we are proud to deliver the level 7 solicitor apprenticeship. Our reasons for doing so are rooted in social mobility, a desire to break down unfair barriers to access, and a belief that we should widen the pool of talent available to employers in a sector in which Britain is a world leader – our rationale is set out in more detail here.
18 months after the launch of our programme, in partnership with leading global legal education provider BARBRI, the data show that a significant proportion of our solicitor apprentices are from “non-traditional” backgrounds. Either personally, or they work for employers that traditionally found it difficult to offer training contracts. In particular:
- 80% live in the regions
- 61% of our partner-employers are SMEs, mostly outside London and the South-East. This runs counter to the national trend by SMEs away from apprenticeships
- 71% of apprentices are aged 25 or over – opportunities are opening up for people working as paralegals who previously had no accessible progression route to qualification
- We also have many younger apprentices progressing towards the solicitor apprenticeship via legal administration and paralegal apprenticeships
- Our solicitor apprentices have a wide range of academic and vocational backgrounds, including progression from the paralegal apprenticeship and other vocational legal qualifications. In every case though, their employers see their potential to progress to qualification
- Most solicitor apprentices who have undergraduate degrees have already incurred £50K+ of debt and are unable to fund additional training costs themselves – often, they work for employers who can support the apprenticeship but are not able to finance significant additional training costs
- 29% of employers are in-house legal teams in the public and private sectors. Notably, this includes 21 local councils – a part of the legal sector that has traditionally found it hard to recruit, develop and retain legal talent.
One of the five missions of our “mission-led” government is to break down barriers to opportunity. Breaking down barriers to opportunity is why we offer this apprenticeship and have developed a pathway – from school leaver to qualified solicitor – to support prospective apprentices of all backgrounds.
Were the solicitor apprenticeship to be de-funded, barriers that have been erected and strengthened, in some cases over centuries, but are just beginning to come down, will be reinforced.
The top rung of the “ladder of opportunity,” that many have worked so hard to create, will be removed. It will be bad for growth, bad for opportunity and bad for employers.
We will therefore be working hard with partner-employers, apprentices and the skills sector to make sure that the right decision is made in relation to the level 7 solicitor apprenticeship. Other education providers and employers will be campaigning equally hard for their sectors. However, when seen through the lens of “breaking down barriers to opportunity,” it is hard to identify many other level 7 apprenticeships that can stake a better claim to being on the right side of the line when these difficult decisions are made.
If you’d like to discuss or share your thoughts, please get in touch with your usual contact at Damar or reach out to our Managing Director, Jonathan Bourne, on LinkedIn or by email at jonathan.bourne@damartraining.com.