Recommendation 39

HM Government · verbatim extract Not Addressed

NOT TAKEN FORWARD The government does not agree with the Committee that that all age funding for Level 7 apprenticeships should be re-introduced. As the government set out in May 2025, from January 2026 Level 7 apprenticeships will no longer be funded except for young apprentices under the age of 22, and those under 25 who are care leavers or have an Education, Health and Care Plan. This is a crucial step in delivering the government’s Plan for Change and achieving our missions of driving growth and breaking down barriers to opportunity. Apprenticeship starts by young people under 25 fell by almost 40% over the last decade. The government therefore wants to ensure that public funding is prioritised towards those at the start of their working lives, rather than those already in work. It is right that Level 7 funding is prioritised for those entering the labour market, who need skills and training to get on in their careers. Many young apprentices have already begun careers as solicitors and accountants through this route, and the government wants to see this continue. In addition, the government will continue to fund all current Level 7 apprentices of any age, and any who start before 1 January 2026, through to completion. Skills England, who engaged with employers regarding this change, concluded that there is good availability of alternative routes and evidence also suggested that there was unlikely to be a significant or unavoidable fall in the supply of these skills in the long term as a result. Additionally, Skills England did not find a strong enough economic rationale to exempt a small group of Level 7 apprenticeship standards from defunding. The government encourages employers to invest in upskilling their staff aged over 22 to this level where this is beneficial for them and their staff. This will support levy funding to be re-balanced towards young people.