Investment In Degree Level Apprenticeships Soars
New data released by the Department for Education in response to a parliamentary question by MP, Peter Bedford, has revealed that spending on degree level apprenticeships doubled during the period 2019-24 .
In response to the question, the Parliamentary Under-Secretary of State for Children and Families, Janet Daby, stated on behalf of the Department for Education that:-
- Investmenmt in level 7 apprenticeships, which equates to a Master's degree, increased by 4% between 2019-24, from £103 million (5%) in 2019/20 to £238 million in 2023/24 (9%)
- Spending on level 6 apprenticeships, which are equivalent to a bachelor's degree, saw a larger rise of 9% during the same period, from £114 million (6%) to £387 million (15%)
Commenting upon the new statistics, the Director of Campaigns at the Recruitment and Employment Confederation (REC), Shazia Ejaz, stated: "Spending on high-level apprenticeships - equivalent to master’s degrees - has doubled in five years, while we risk entry-level routes being left behind. It is time to rebalance the system. Young people need real pathways into vital sectors such as health, social care, and construction, areas crying out for skilled workers. The status quo is not working."
Ejaz added: "The government must act quickly and decisively on its manifesto pledge to deliver a more flexible Growth and Skills Levy. We need a system that creates a pipeline of opportunity for young people while ensuring employers and economic needs are at the heart of apprenticeship and skills funding."
Skills England
The Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill, which is in its final stages in terms of its progress through Parliament (consideration of amendments), will transfer the duties and responsibilities of the Institute for Apprenticeships and Technical Education (IfATE) to a new body called Skills England, with the name of the apprenticeship levy being changed to the growth and skills levy.
As we highlighted in a previous article, the Government recently announced measures to increase the number of apprentices who qualify each year by up to 10,000, with shorter apprenticeships to be piloted in the healthcare, green energy, and film/TV production sectors. The minimum time frame for completing such an apprenticeship would fall from 12 months to 8 months
The Government's objectives in terms of the changes are to reduce skills gaps and boost economic growth, with the Government also announcing at the same time that employers can now decide whether those over the age of 19 who enrol in apprenticeships are required to earn a level 2 English and maths qualification (equivalent to GCSE) in order to complete it.
Job Vacancies Fall Back To Pre-Pandemic Levels
New statistics released by the Office for National Statistics (ONS) have revealed that job vacancies fell by 26,000 to 781,000 in January - March 2025, the lowest level since prior to the COVID-19 pandemic. Back in January to March 2020, the total stood at 795,000, 14,000 higher than now.
The number of job vacancies in the economy peaked at 1,318,000 back in March 2022, 537,000 more than now. Moreover, by May 2022, the number of job vacancies exceeded the number of people available to fill them (i.e. the unemployed) for the first time, with the ONS report stating that “for the first time since records began, there are fewer unemployed people than job vacancies.”
Commenting upon the latest findings, the chief executive of the Recruitment and Employment Confederation (REC), Neil Carberry, stated: "There are some cautious reasons for optimism in employers’ reported views of their own business prospects, and in the relatively stable levels of unemployment and employment, and economic inactivity that is finally starting to drop. But there are also huge headwinds related to the sheer cost of employment, that the government would do well to take seriously as a threat to recovery....While a rebound in hiring is expected in 2025, recent global trade disruptions have brought fresh uncertainty."
