Plans to restrict levy funding of level 7 apprenticeships – equivalent to a master’s degree – have been branded a major blow to logistics employers requiring skilled employees.

The university vocational awards council (UVAC) said cutting the funding of these apprenticeships would widen the skills gap and have a significant financial impact on firms needing to develop future managers, business leaders or fill specialist roles.

The UVAC produced a report in partnership with Sheffield Hallam University to explore the critical purpose of training apprentices of all ages to deliver jobs of the future.

It looked at the importance of older apprentices to employers in a shifting labour market and the impact higher and degree apprenticeships, such as those at level 7, have on firms from a growth, employee retention, skills and productivity perspective.

Dr Mandy Crawford-Lee, chief executive at UVAC said cutting levy funding of level 7 apprenticeships would hit employers, the wider economy and the development of both senior level staff and those in specialist positions:

“It will largely affect those businesses with apprentices aged over 25 that rely on the current financial support to meet the cost of upskilling employees to be effective managers, business leaders or occupy more technical roles via level 7 and master’s degree apprenticeships,” she said.

“Given this government’s current focus is economic growth and addressing social mobility, it makes no sense to introduce policy that could undermine it.”

The UVAC cited research from the national foundation of educational research, which found 90% of roles within firms across sectors such as transport and logistics would require higher-level skills by 2035, highlighting how the wider economy and more employers would become dependent on degree apprenticeships at levels 6 and 7, rather than just those at lower levels.

The UVAC says Level 7 apprenticeship funding will be affected.

The UVAC says Level 7 apprenticeship funding will be affected

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Dr. Mandy Crawford-Lee added: “We welcome any attempts to engage more young people with apprenticeships through the government’s plans to introduce paid foundation apprenticeships, but this should not be at the expense of level 7 and the essential levy funding support needed by employers in transport and logistics.”

Last month, the government announced a new growth and skills levy, which replaces the apprenticeship levy while at the same time including new foundation apprenticeships.

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