Apprenticeship plans are ‘mixed bag’ for business

27 May 2025

The Government has promised more training for people aged 21 and under in England – but at the expense of funding for level 7 apprenticeships for anyone over the age of 21.

Only 16 to 21-year-olds will qualify for funding for level 7 apprenticeships – the highest level, considered equivalent to a master’s degree – under the plans, meaning many higher apprenticeships will have to be completely paid for by employers.

But the Government wants to create 120,000 more training opportunities for young adults, and those who need to retrain and announced seven new foundation apprenticeships in sectors such as health and social care, engineering and construction.

These will be at the level of GCSEs and are intended to provide a broad introduction to work before students specialise.

Alex Veitch, Director of Policy at the British Chambers of Commerce, said: “Apprenticeships are high-quality, valued qualifications and businesses welcome the funding boost announced by Government.

“The BCC has long called for flexibility in the growth and skills Levy for employers to invest in pre-apprenticeship training to provide more pathways into technical and vocational careers.

“At a time when there are nearly 1 million NEET young people in the UK, employers will welcome the new Foundation Apprenticeships, with a financial incentive, in key skills shortage areas such as construction.

“However, defunding the majority of Level 7 apprenticeship opportunities is deeply disappointing. We recognise the funding challenges ministers are facing, but skills gaps at higher levels need to be addressed if the Government is to deliver its industrial strategy and growth missions.

“Employers stand ready to work with Skills England to make sure other types of training under the Growth and Skills Levy meet local needs.”