Chartered ABS statement on the restrictions to Level 7 apprenticeships
The Chartered ABS has responded to the Prime Minister’s announcement to restrict funding for Level 7 apprenticeships.
Professor Stewart Robinson, Chair of the Chartered Association of Business Schools said: “We understand the need to review and reform the apprenticeships Levy and build an improved fit-for-purpose skills system that underpins the Government’s missions. However, the decision to restrict Level 7 apprenticeships risks being detrimental to the Government’s growth, opportunity, and health missions. Level 7 business and management apprenticeships address our nation’s productivity lag, are widely used within our public services and the NHS, and support social mobility.”
The UK has lowest levels of firm level investment in management training in the G7 and, as a consequence, the lowest levels of productivity. Level 7 business and management apprenticeships are an excellent way to raise management skills and boost their productivity and growth for businesses that needs them. Yet the majority (60%) of the Senior Leader Apprentices benefiting from this training are in public services, and in particular the NHS. And even at this level 25% of Level 7 management apprentices have no prior degree qualification, including 10% with no qualification at all.
We encourage the Government to consult with employers, apprentices, business schools and universities before progressing with this proposal.
Notes for editors
There were 17,490 Level 7 business and management apprenticeship starts in 2022-23. This demonstrates demand from employers, in particular from the public sector to invest their levy funding in developing their managers.
The UK has the lowest levels of productivity in the G7, and lowest levels of firm level investment in management training in the G7.
According to the CMI 60% of Level 7 management apprentices are in public services such as the NHS, social care and local government. Less than 10% are in FTSE 350 companies.
Chartered ABS analysis of DfE data shows that Level 7 business and management apprenticeships support social mobility:
25% join with no prior degree qualification, including 10% of apprentices with no prior qualifications.
87% of Business & Management apprentices are over 31, outstripping traditional entry routes to postgraduate education (52%).
They enable fast track progression for those with lower level qualifications (including those with no qualifications) at five times the rate of equivalent non-apprenticeship programmes.