Universities urge Government to help local businesses close skills gap with degree apprenticeships

The survey by the University Vocational Awards Council (UVAC) of its university members, explores what policy commitments and funding support the new government should make to ensure higher and degree apprenticeships meet local employer talent needs.

Those surveyed are of the firm belief that Labour should continue the progress made across higher and degree apprenticeships under the previous government, with 84% urging Labour to support their continued growth.

From a financial perspective, 64% believe the new government should commit to helping universities meet the cost challenges of delivering higher and degree apprenticeships in partnership with local employers and help them diversify their provision to meet the needs of more business sectors.

With attention now fixed on how firms across Bristol will contribute to funding apprenticeships, the research explored the impact Labour’s Growth and Skills Levy will have when it replaces the Conservative’s Apprenticeship Levy, which is financed by a 0.5% compulsory contribution by employers with payroll costs of over £3m.

Despite being met with concerns, especially from levy-paying organisations locally, and regarded as another form of business taxation, 60% of universities felt the Apprenticeship Levy better supported the delivery of apprenticeships across all levels, ages and occupations when compared to Labour’s new funding solution.

However, in a boost to those businesses paying the current levy, 28% felt that apprenticeship provision for 16-18 year olds should be paid for by general taxation in same way as A levels, T levels and Applied Generals.

Over three quarters (77%) of respondents are concerned that Labour’s Growth and Skills Levy could allow local employers to spend up to 50% of their payments on non-apprenticeship training which could hinder the volume of top talent entering their business via apprenticeships.

Those in favour of the creation of the future Growth and Skills Levy believe it will drive business improvements, with 45% believing it will offer a fairer apprenticeship deal to both large and small employers in Bristol. Around a third (32%) feel it will provide more funding to higher and degree apprenticeships than the previous government and 36% believe it will increase social mobility in relation to apprenticeship delivery.

One of the big issues under the previous government was the approximate 20% of its annual apprenticeship budget being pledged to degree apprenticeships, with 77% of universities believing that was not enough under the Conservatives to meet the needs of firms locally.

Dr. Mandy Crawford-Lee, chief executive for UVAC commented: “Given that there is still some uncertainly around Labour’s skills policy and how it will meet its manifesto pledges, we were keen to gauge the mood of universities delivering higher and degree apprenticeships in partnership with local employers of all sizes.

“Our members clearly feel it’s vital that Labour continues to safeguard the future of apprenticeships and makes them available to people of all ages and across all qualification and skill levels, so that a change in government doesn’t stifle their growth. Any risk to the funding of higher and degree apprenticeships seems unthinkable when you consider how critical they are to promoting social inclusion, bolstering the wider regional economy and addressing the skills gap across all sectors.

“Our survey is a real eye-opener into what the higher and degree apprenticeship landscape could look like under the newly elected government and we’d urge Labour to take on board our findings and the views of both the region’s universities and local employers responsible for their provision.”

To find out more information on how UVAC is helping universities and employers support the delivery of higher and degree apprenticeships, please visit www.uvac.ac.uk.