Apprenticeship Trends Suggest Reducing Higher Learning Funding Risks Growth

Data released today reveals higher and degree apprenticeships are critical for skills supply, amid worries that reduced funding for these qualifications could harm growth.

Higher Apprenticeship (including Degree Apprenticeship) starts rose by 8.2% in 2023/24, as employers turn to these qualifications to gain and develop the higher skills needed to drive their performance.

Reduced funding for Higher Apprenticeship qualifications in the Growth and Skills levy risks widening higher skills gaps, harming productivity and growth.

NCUB CEO Dr Joe Marshall, said:
“These qualifications, delivered by universities and businesses collaboratively, are vital to produce the skilled workforce needed in the UK's national growth sectors. They are important for employers – building a high-quality supply of skills that drives productivity.

“However, funding for the future of this route is currently under threat as the government plans reform of the Apprenticeship Levy. The new Growth and Skills Levy should ensure funding is available to meet the demand for apprenticeships, whilst maintaining flexibility for businesses to fund higher level apprenticeships – including at Level 7 - where they meet national and regional higher skills needs.”

The data comes alongside concerning trends around international student visas published today – which have fallen by 19% from 2023. Marshall concluded: “This issue matters for universities. The uncertainty on the future of funding for higher apprenticeships comes alongside a period of financial instability. The continued decline in the number of international student visas granted worsens this picture. Institutions need certainty and action to create financial stability, to deliver the qualifications and education pathways needed for national prosperity.”