Level 7 apprenticeships are vital for advanced digital skills, accounting for just 6% of levy funds
The UK government is pushing forward with defunding Level 7 apprenticeships (equivalent to a Master’s) through the Growth and Skills levy.
According to FE Week, removing Level 7 apprenticeships from levy funding could free up around £240 million in the apprenticeship budget. The Office for Budget Responsibility (OBR) forecasts that UK companies will raise £4 billion in apprenticeship levy receipts in 2024-25, which is an increase from the £3.6 billion raised in 2022-23. The cost of Level 7 apprenticeships make up 6% of levy funds.
Commenting on this, Julian David, CEO of techUK said:
"Skills England identifies digital technologies as one of four critical sectors for economic growth, which cannot happen without a concerted focus on the advanced digital skills needed to support AI and automation. Level 7 apprenticeships are vital for developing highly skilled talent in such tech areas, serving as critical entry points for innovation and meeting the demands of a rapidly evolving tech landscape.
“While some apprenticeship funding supports individuals with existing degrees, eliminating Level 7 apprenticeships ignores the pressing need to nurture advanced skills in transformative fields like AI, which often includes skilling people who are already qualified at Level 6. Progressing through apprenticeships, with the ultimate goal of being highly-skilled, is a crucial tenet of the system.
“Programmes such as AI Data Specialists, Digital and Technology Solutions Specialists, Applied Data Analytics, and Accountancy and Actuary have been instrumental for companies adapting to emerging technologies and seeking the productivity gains offered by tech adoption. The removal of government funding threatens the long-term viability of not only Level 7 but also Level 6 degree apprenticeships, potentially leading to a withdrawal by universities and training providers from delivering these programs.
“While we appreciate government rebalancing apprenticeship spending to support young people and those early in their careers, techUK firmly believes apprenticeships should be accessible by all.
“To future-proof the UK’s tech industry and maintain its global competitiveness, we need to invest more in both early-career talent and the existing workforce. Choosing between the two is not an option—we need to prioritise both.”
Please get in touch to discuss the implications of these changes.
Julian David OBE
Julian David OBE
Julian David is the CEO of techUK, the leading technology trade association that aims to realise the positive outcomes that digital technology can achieve for People, Society, the Economy and the Planet.
He leads techUK’s nearly 100 strong team representing over a thousand British based tech companies, comprising global and national champions and more than 600 SMEs and ScaleUP companies. techUK is the voice of the tech industry in the UK with 21 member led programmes covering all of tech from ‘Chips to Clicks’ and addressing 11 market sectors from Defence and Central Government, through to Health, Consumer Electronics and Financial Services.
In 2021 techUK launched TechSkills, the employer-led accreditation organisation that aims to improve the flow of talent into the digital workforce and open up access for all to high value tech jobs.
Julian represents techUK on a number of external bodies including the Digital Economy Council, the National Cyber Security Advisory Council and the Department of Business and Trade’s Strategic Trade Advisory Group. He is member of the NTA Advisory Board of DIGITALEUROPE and is a member of the Board of the Health Innovation Network the South London Academic Health Science Network.
Julian has over thirty years of experience in the technology industry. Prior to joining techUK, he had a series of leadership roles at IBM including Vice President for Small and Medium Business and Public Sector. After leaving IBM he worked as a consultant helping tech SMEs establish successful operations in the U.K. His personal interests include Football (West Ham, Balham FC and Real Madrid) and Art.
- Email:
- [email protected]
- Twitter:
- @techUKCEO
- LinkedIn:
- https://www.linkedin.com/in/julian-david-8013b817/
Nimmi Patel
Nimmi Patel
Nimmi Patel is the Head of Skills, Talent and Diversity at techUK. She works on all things skills, education, and future of work policy, focusing on upskilling and retraining. Nimmi is also an Advisory Board member of Digital Futures at Work Research Centre (digit). The Centre research aims to increase understanding of how digital technologies are changing work and the implications for employers, workers, job seekers and governments.
Prior to joining the techUK team, she worked for the UK Labour Party and New Zealand Labour Party, and holds an MA in Strategic Communications at King’s College London and BA in Politics, Philosophy and Economics from the University of Manchester. She is currently taking part in the 2024-25 University of Bath Institute for Policy Research Policy Fellowship Programme.
- Email:
- [email protected]
- Phone:
- 07805744520
- Twitter:
- @nimmiptl
- Website:
- www.techuk.org
- LinkedIn:
- https://www.linkedin.com/in/nimmi-patel1/
Margherita Certo
Margherita Certo
Margherita is the Head of Press and Media at techUK, working across all communications and marketing activities and acting as the point of contact for media enquiries.
Margherita works closely with the staff at techUK to communicate the issues that matter most to our members with the media.
Prior to joining techUK, Margherita worked in public relations across technology, public affairs, and charity, designing evidence-based strategic campaigns and building meaningful ties with key stakeholders.
- Email:
- [email protected]
- Phone:
- 07462 107214