More priority industries should be exempted from the UK government’s plans to defund master’s level apprenticeships, according to a new report by a group of cross-party MPs.
After much speculation, ministers confirmed earlier this year that?level 7 apprenticeships for those aged 22 and over will no longer be funded?via the apprenticeship levy from January 2026.
An inquiry on skills held by the House of Commons Education Select Committee found that this decision has been “overwhelmingly opposed” by sector groups.
The Association of Employment and Learning Providers described it as “a backward step that will exacerbate skills gaps in key sectors, hurt the apprenticeship brand and limit opportunity”, while the Association of Apprentices warned it will impact career progression and access to advanced qualifications for those from lower socio-economic backgrounds.
“The defunding of these apprenticeships will reduce uptake – particularly in key sectors such as healthcare – widen existing skills shortages, and limit career progression for many,” a report published by the committee says.
MPs highlighted figures showing that almost 90 per cent of level 7 apprentices are aged 22 and over.
The government recently agreed to continue funding for certain level 7 apprenticeships in health and social care?after concerns were raised about the impact on the NHS.
The “mitigation fund” will initially last until 2029 but MPs have recommended that the Department for Education (DfE) re-introduces levy funding for all ages within the eight growth-driving sectors that were identified in the government’s Industrial Strategy, including advanced manufacturing, defence and the creative industries.
Levy funding for level 7 courses in regulated professions should also be protected, the committee adds, and the DfE should monitor the impact of the defunding and be willing to reintroduce levy funding in other areas where necessary.
Compared with the reliable information available on studying at university, the report says there are “clear inequalities” in the support young people receive in finding apprenticeships.
As a result, it recommends that the admissions service Ucas be expanded to offer a single source of information for all routes, including academic and vocational pathways.
And MPs say application timelines for vocational courses, including apprenticeships, should better align with those for university admissions to avoid students being influenced by staggered deadlines.
In its report, the Education Committee also?highlights?that the creation of Skills England has been broadly welcomed?– but it needs to be protected by an act of Parliament.
“Without a statutory foundation, Skills England may be altered or abolished by this or any future Government and without the consent of Parliament,” it warns.
MPs also raised issues presented to them around the independence of the new executive agency. The Confederation of British Industry said it had concerns about its “level of independence and capacity to influence skills policymaking”.
The Education Committee recommends a review of Skills England’s governance and leadership structure within two years to ensure independence and cross-departmental influence.
“Skills England has been given the crucial role of transforming skills opportunities and driving growth and it is vital that it is able to work impartially and, if necessary, challenge Government policy and advocate for resources.”
MPs also reported serious concerns that the role of chief executive officer of Skills England is “too junior within the civil service hierarchy”.
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