New research reveals 68% of employers would ditch degree apprenticeships if levy funding was scrapped
The majority of employers would discontinue degree apprenticeships without support from the government’s apprenticeship levy, according to a new report.
According to the study, the overwhelming majority of employers regard the apprenticeship levy as a “crucial catalyst for the administration of degree apprenticeships”.
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Key findings include:
- 99% of employers consider the apprenticeship levy to be crucial for programme sustainability.
- Without the apprenticeship levy, most employers (68%) would discontinue degree apprenticeships.
- 95% of employers believe that degree apprenticeships enable achievement of their strategic goals, with 93% stating that degree apprenticeships are pivotal in fostering future business growth.
- 95% of employers consider degree apprenticeships to be an effective vehicle for attracting and retaining talent.
The report makes several recommendations, which include a call for government to sustain the apprenticeship levy to ensure continued growth and accessibility of degree apprenticeships.
It also recommends that training providers and employers introduce a more structured and tailored approach to delivery, thereby improving the learning experience and support for degree apprentices and strengthening the relationship between partners.
Apprenticeship levy transfer
Earlier this month (18 March), the government pledged £60m to help businesses create more apprenticeship places as well as announcing changes to the apprenticeship levy transfer scheme.
From the start of April, large employers who pay the apprenticeship levy will be able to transfer up to 50% of their funds – up from 25% currently – to support other businesses to take on apprentices.
The changes are expected to enable up to 20,000 more apprenticeships.
Professor Raheel Nawaz, the pro vice chancellor at Staffordshire University who led the Voices from the Frontline research, said: “The significant potential of degree apprenticeships to economic growth has been recognised in the government’s recent announcement about investing a further £60m to enable 20,000 more apprenticeships. This is on top of the £40m degree apprenticeships development fund launched in September 2023.
“We also welcome the fact that the government wants to level up opportunities to SMEs by paying the full cost of training for anyone up to the age of 21.
“Nevertheless, our findings show there is still a long way to go for achieving parity of esteem and equity of opportunity.
“Understanding the true impact of degree apprenticeships, identifying underlying challenges, and deciphering the motivations of key stakeholders is crucial for enabling and optimising the skills revolution.”
Read more: How apprenticeship degrees are advancing careers in construction
