The EPC has received a response from the Rt Hon Baroness Jacqui Smith, Minister for Skills, in reply to a letter concerning postgraduate engineering apprenticeships.
Last month, EPC Chief Executive Johnny Rich wrote to Bridget Phillipson MP, the Secretary of State for Education, to express concern about removal of funding for Level 7 apprenticeships in engineering  from what is permitted under the Apprenticeship Levy (which is soon to become the Growth & Skills Levy). Johnny’s letter can be found here and he also wrote a more detailed examination of the arguments for the Higher Education Policy Institute.
The EPC argued that Level 7 apprenticeships play an important role in meeting skills needs by providing an opportunity to up-skill or re-skill. Currently large employers can offset the cost of these apprenticeships from the funding that they are required to pay into the Apprenticeship Levy and smaller employers (who don’t pay the Levy) can access funding. Since the introduction of the Levy in 2015, apprenticeships at higher levels (4 to 7) have expanded significantly while lower levels have fallen.
The Government is yet to formally announce its plans for Level 7 apprenticeship funding, but disappointingly the response from the Minister provides no indication that Engineering will be exempted from wider measures:
Dear Mr Rich,
Thank you for your correspondence of 11 March, addressed to the Secretary of State, regarding Level 7 engineering apprenticeships. I am replying as the minister responsible for this policy area.
The department recognises that for some employers, level 7 apprenticeships form an important part of their workforce and career development offers. However, in recent years, we have seen huge growth in level 7 apprenticeships, yet declining opportunities for young people.
The government therefore wants to ensure that we are prioritising our support for people at the start of their working lives instead of subsidising qualifications for people established in their careers. That is why we will be asking more employers to step forward and fund level 7 apprenticeships outside of the levy, enabling better targeting of the growth and skills offer to those who need it most.
The reformed growth and skills offer will deliver greater flexibility for learners and employers, aligned with our industrial strategy – creating routes into good, skilled jobs in growing industries, such as in construction, digital and green skills. These changes offer opportunities, but we recognise that they will also have a significant impact, particularly for those starting to recruit or make use of level 7 apprenticeships.
The department has received a wide range of representations which it will consider, both directly and via Skills England, which has engaged with a wide range of stakeholders. I recognise the importance of providing clarity as soon as possible on future funding for level 7 apprenticeships and we expect to communicate a decision shortly.
Thank you again for writing. I hope this information is useful for you.
Yours sincerely,
The Rt Hon Baroness Jacqui Smith
Minister for Skills
The EPC will continue to campaign on the issue.
