In recent months, the government has been indicating that it intends to make “widespread” cuts to the funding of Level 7 apprenticeships from the Apprenticeship Levy (which is shortly to become the Skills & Growth Levy.
This threatens the funding for many postgraduate opportunities in engineering for UK students. The EPC Chief Executive Johnny Rich has written to the Secretary of State on behalf of the membership as follows.
Dear Secretary of State,
Further to recent announcements about the future funding arrangements of Level 7 apprenticeships, the Engineering Professors’ Council1 would urge the Government to make special or alternative provisions for apprenticeships in engineering.
As you know, economic growth is at risk due to significant skills shortages (insufficient numbers) and gaps (insufficient skill levels) in the engineering sector2, a sector that accounts for ÂŁ645Bn – more than a third of the UK’s GDP3. Engineering is also critical to regional development as the spread of jobs and higher wages are not concentrated in any particular parts of the country4. Indeed, often the greatest opportunities are in those parts of the country most in need of growth and improvements in productivity. Engineering higher education is also a major driver of social mobility and opportunity: graduate premiums in engineering are both higher and more equal for those from disadvantaged backgrounds than in other disciplines.5
Level 7 apprenticeships in engineering are vital for up-skilling (and re-skilling), which is critical not only for the engineering sector, but for the wider economy and the industrial challenges we face as outlined in Invest 20356, such as in defence, advanced manufacturing, clean energy industries, and digital & technologies (particularly AI). Engineering is a highly dynamic sector with an ageing population of skilled professionals. Even if we can meet the profound challenges of providing sufficient new engineers into the labour market, keeping them there and maintaining their level of expertise will rely on increasing the availability of – and demand for – a combination of in-work training and education at the highest level.
In other words, Level 7 apprenticeships in engineering are strategically critical.
Achieving Level 7 qualifications in engineering (which are often instrumental in professional recognition) is generally too expensive for individuals to embark on at their own cost and, given the competitive demand for skilled labour in the context of shortages, employers are fearful that if they invest heavily in these staff they may be poached by competitors. This is a prime example of where a low-cost intervention by government can have large-scale impact.
Given the public need, we suggest that the government has an explicit reason and a responsibility to ensure that an exception is made to preserve strategically important Level 7 apprenticeships, such as those in engineering. I am delighted to say that, just last year, the government took this more nuanced, more sensible approach with regard to Foundation Years. For most subjects, the funding was cut to align with Access Courses, but for Engineering, the government recognised that the cost of a Foundation Year and their importance in meeting skills shortages were both too great. A discipline-specific exception was made.
We wholeheartedly support the government in ensuring Growth & Skills Levy funds are spent as effectively as possible and that is why we request that Level 7 Engineering apprenticeships continue to be funded in this way. However, if that cannot be the case, we would like to work with you to ensure that  employers, education providers and potential apprentices are sufficiently supported and resourced in alternative ways, such that ever-growing skills shortages in this area do not put the brakes on growth.
I would be delighted to meet you or your DfE colleagues to discuss this further and work out cost-efficient ways of protecting the engineering skills pipeline.
Yours sincerely,
Johnny Rich
Chief Executive, The Engineering Professors’ Council
