Labour’s plans could leave financing of apprenticeships in a lurch - Dr Mandy Crawford-Lee

In its manifesto, Labour claimed the Conservative’s Apprenticeship Levy was broken, needed to provide greater flexibility and that it was planning to invest around 50 per cent less in apprenticeships across all levels moving forwards. That fear has not been alleviated and for apprenticeships to come under threat seems unthinkable when you consider how critical they are to the region in terms of promoting social inclusion, bolstering the local economy and addressing the skills gap across all sectors.

UVAC is not alone in recognising and voicing these concerns. A recent survey of our university members explored what policy commitments and funding support the new government should provide, to ensure higher and degree apprenticeships meet Yorkshire’s employer talent needs.

The results certainly provided food for thought. A resounding 88 per cent of universities believe that higher and degree apprenticeships hold the key to Labour driving economic growth and addressing the urgent skills gap across the UK. Those surveyed believe that the new government should continue the apprenticeship progress made under the Conservatives, with 84 per cent urging Labour to support their continued growth.

As is always the case, the future expansion of apprenticeships across all levels in the region will largely boil down to money. 64 per cent of universities believe Labour should commit to helping them meet the cost challenges of delivering higher and degree apprenticeships in partnership with employers and help them diversify their provision to meet the needs of more business sectors.

The research also 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 per cent compulsory contribution by employers with payroll costs of over £3m.

Despite being regarded as another form of business taxation by levy-paying organisations, 60 per cent 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.

Labour’s Growth and Skills Levy has prompted many concerns. Although 50 per cent of payments would be ring-fenced for apprenticeships, the new government is looking to offer greater planned flexibility around other approved training programmes.

This Labour claim will give employers in the region the choice they have been demanding - but at what cost to future apprentices across Yorkshire with an ambition to undertake a level 6 and 7 apprenticeship and those higher education institutions which support progression into higher paid careers and the registered professions?

Over three quarters (77 per cent) of universities are rightly concerned that allowing employers to spend less of their levy payments on non-apprenticeship training will hinder the volume of top talent entering the workplace via apprenticeships. We share the concern that less funding in principle will go to finance apprenticeships under Labour’s scheme, especially at level 6 and 7.

Dr Mandy Crawford-Lee is chief executive for the University Vocational Awards Council (UVAC).