What will replace Level 7 apprenticeships if funding is cut? asks TechSkills & techUK
The UK government has announced that Level 7 apprenticeships, equivalent to a Master’s, will no longer be funded by the Growth and Skills levy, formerly apprenticeship levy. This is in order to rebalance apprenticeship spending to support young people and those early in their careers. While we acknowledge and appreciate the focus on early careers, it is important to note that innovation and future growth depend heavily on the advanced leadership and technical skills developed through Level 7 apprenticeships; Skills England report identifies digital technologies as one of four critical sectors for economic growth. This economic growth cannot happen without a concreted focus on the advanced digital skills needed to support AI and automation.
Businesses are willing to invest in training but techUK believe it is a serious misstep to remove funding from the levy for Level 7 programmes including: AI Data specialist, Digital and Technology Solutions specialist, Applied Data Analytics programme which are excellent for driving essential IT leadership required by all companies facing inevitable changes due to emerging technologies. Other notable capabilities at Level 7 include Accountancy and Actuary, both of which require professional qualifications. Funding for these programs is crucial for recruiting early-career candidates and encouraging qualification without the deterrent of debt. Some public sector organisations also use Level 7 apprenticeships to fill leadership roles and support digital transformation. This is essential for maintaining service delivery amid ongoing fiscal challenges.
Universities have highlighted the significant social and economic impact of Level 7 apprenticeships, particularly in fields such as digital technology, accountancy, and actuarial science, which are key to the UK’s competitive edge. The removal of Level 7 funding could result in universities withdrawing from delivering degree apprenticeships altogether, harming the long-term viability of both Level 6 and Level 7 programs, causing a skills vacuum across sectors. Additionally, Level 7 apprenticeships support social mobility by providing opportunities for colleagues who may not have had access to higher education earlier in life.
At all levels, including Level 7, apprenticeships had higher levels of earnings one year after study than equivalent level education and training courses. Given that the Employer Skills Survey 2022 reported that two-fifths (38%) of all UK establishments planned to offer apprenticeships in the future, a 30% increase since 2016, it would be a shame to undermine skills development and restrict employer levy investment.
Given the essential role these programs play in driving economic growth, promoting social mobility, and supporting innovation, government should reconsider its decision to defund Level 7 apprenticeships, especially in key areas like data, AI, and digital technology. TechSkills and techUK believes by raising the budget for the Growth and Skills Levy in line with the increase in the amount of money raised by the apprenticeship levy, would minimise any restrictions on Level 7 apprenticeships.
Before making final decisions, we urge the government to undertake consultation with businesses, public services, and educational institutions to understand the full impact of removing Level 7 funding and to explore alternatives that support lifelong learning and talent development.
Lorna Willis, CEO of TechSkills commented:
“Level 7 apprenticeships develop highly skilled talent in areas like data analytics and cyber security and are a critical entry point for driving innovation and meeting the demands of an evolving tech landscape. With demand for tech skills soaring, cutting this funding could stifle growth and make it even harder for employers and universities to fill these high-demand roles. We need more investment in early careers, not less, to future-proof the tech industry and keep the UK competitive in the global tech market.”
Lorna Willis
Lorna Willis
Lorna is an award-winning CEO who puts investment in people and talent at the heart of the organisations she’s worked for. She successfully led the transformation of Archant Community Media delivering new revenue, audience growth and improved staff retention and engagement, as well as leading on the creation of a learning organisation with the emphasis on integrating digital skills and capability.
Lorna has significant experience across a wealth of functions including strategy, transformation, sales, finance, marketing, fund raising and sponsorship, and is the driving force to grow TechSkills and Tech Industry Gold accreditation to be the national standard for digital skills learning across the UK.
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.
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