Reflecting on Apprenticeship Week
Following Apprenticeship Week, it’s a fitting time to reflect on the incredible contributions of apprentices to businesses nationwide. It’s been great to see how the perception of apprentices has improved significantly over the past eight years.
This positive shift has coincided with a surge in higher and degree-level apprenticeships. While some are calling for the abolition of Level 7 apprenticeships, I’d be sorry to see them go.
Boosting Skills, Boosting Productivity
While there are valid arguments against them, Level 7 apprenticeships are providing more people with advanced skills and knowledge that benefit the UK economy. The UK’s “productivity puzzle” has been a long-standing issue. Research from the London School of Economics, which surveyed over 20,000 people across 35 countries, suggests that management practices account for a significant portion (between a quarter and a third) of international productivity gaps. Given that the Senior Leader programme is a popular Level 7 standard, its positive impact on individuals, organisations, and the nation seems clear.
Funding and Investment in Apprenticeships
The availability of funding for these apprenticeships has enabled many within organisations, who wouldn’t otherwise have pursued postgraduate qualifications, to do so. This is particularly evident in the frequent social media posts from individuals in local councils and small businesses celebrating their achievements.
It’s argued that businesses should fund Level 7 apprenticeships themselves, and in a way, they are. While there’s a debate about whether levy funds are truly “government money,” if my business pays into the levy and I can then use those funds, it feels like my investment. Historically, businesses haven’t always prioritised skills investment, and the levy has encouraged many to engage with apprenticeships. In the past this has sometimes led to short-term growth taking precedence over long-term skill development, which is actively impacting organisations from the resulting skill gaps in several key sectors.
Social Mobility and Level 7 Apprenticeships
Social mobility is a crucial consideration. The Chartered Association of Business Schools’ report, “Bridging the Gap,” highlights how Level 7 apprenticeships are enabling individuals from communities with low higher education rates to achieve postgraduate qualifications – a truly positive outcome. Conversely, this raises the question of whether it’s impacting recruitment of 16-18-year-olds, which is currently at a low point. I’m not yet convinced that the rise in degree apprenticeships is directly causing the decline in younger apprentices. Correlation doesn’t always equal causation.
Challenges and Misconceptions
Another factor contributing to the UK’s lower productivity is the lack of joined-up policies and investment across government departments (Productivity Institute, What explains the UK’s productivity problem, 2024). Departments often work in silos, and insufficient investment in vocational education is a persistent issue.
WBTC’s Commitment to Apprenticeships
It’s worth noting that at WBTC, we don’t offer Level 6 or 7 apprenticeships, so we have no vested interest here. However, as an educational charity focused on early careers, we’re committed to ensuring that apprentices starting their journey with us today have a funded pathway to postgraduate-level qualifications in the future.
Economic Impact and Future Considerations
With apprenticeships projected to contribute £25 billion annually to the economy (DfE, Apprenticeship reforms set to turbocharge economic growth, 2025), a serious discussion with the Treasury is vital. They need to consider their priorities: economic growth and improved productivity, or a return to austerity. The near £800m top slice of the levy funding by the Treasury, this new stealth tax could fund level 7 apprenticeships as well as providing flexibilities in the use of the levy and allowing inflation matching rises in the funding bands.
My message to the government is clear: Invest in apprenticeships, reduce bureaucracy, and ensure that every apprentice, regardless of their background, has the opportunity to reach their full potential.
By Craig Mincher, Managing Director at WBTC.