Level 7 apprenticeships are vital to closing the skills gap and driving economic growth – the country cannot afford to lose them
The recent announcement that the government could restrict the use of levy funding for Level 7 apprenticeships is a real potential setback for employers and the UK economy. As the highest level of apprenticeship, equivalent to a master’s degree, they combine studies with practical on-the-job work experience and are a core way we can enable people in careers to continue to upskill. At the Purpose Coalition, our mission to break down barriers to opportunity has shown us that building an inclusive and dynamic workforce isn’t just about getting people into a job. It’s about enabling them to get on, develop, and thrive.
Employers rely on degree apprenticeships to fill critical gaps in leadership and specialist expertise. They enable people to develop soft and business skills while learning technical ones. Limiting access to these qualifications risks leaving businesses struggling to develop the in-house talent they need to compete, innovate, and grow. In sectors like law, the level 7 changes risk stopping the growth and bedding down of some fantastic new apprenticeship routes have opened up in firms across the sector. Far better to allow these new routes to get more established and grow stronger. It should not be an either/or solution when it comes to skills investment through apprenticeships.
Our network of Purpose Coalition employers, including some of the UK’s most forward-thinking organisations, is united in its concern about these plans. They see degree apprenticeships not as a luxury, but as a strategic investment in their talent, one that equips their workforce with the skills needed to meet future challenges head-on. For smaller businesses, these programmes are often the only viable pathway to develop high-level skills, creating opportunities for employees from all backgrounds to progress into leadership roles.
A better approach to getting more apprenticeships at other levels would be to have more flexibility within the rules to give employers more rather than less freedom on investing the apprenticeship levy than they have right now. That was certainly my intention when I introduced it in 2017 – that we would quickly review its initial progress, learn from business and then add in more flexibility over the next 2-3 years. Instead, it’s largely been left in its original ‘starter’ state.
Yet the skills gap is an even more critical issue for the UK economy than it was in 2017, with key sectors facing chronic shortages. Level 7 apprenticeships provide a real part of the solution by enabling employees to gain advanced qualifications while working, minimising disruption to businesses and ensuring a steady pipeline of skilled professionals. They’re especially effective for enabling those who haven’t got the resources to step out of a career and study at level 7 full time, to nevertheless get to that level of education. They are a crucial mechanism for developing future managers and business leaders. Many organisations have invested significant time and resources into integrating degree apprenticeships into their talent strategies.
The ripple effects on the economy could be significant over time. Employers will face increased difficulty in filling specialist roles, leading to slower innovation and productivity growth. Workers, particularly those from disadvantaged backgrounds, will see fewer opportunities to upskill and climb the career ladder, perpetuating cycles of inequality.
This is a major issue – and one that requires collaborative action to tackle. Throughout 2025, Purpose Coalition Members will be engaging with policymakers to work in partnership for change through our Westminster Leadership Assemblies.
We need more apprenticeships on offer in more sectors and at every level. That’s the challenge – how do we expand this route of opportunity so that even more people can benefit. Breaking down barriers to opportunity is about creating a system that works for everyone -: individuals, employers, and the wider economy. We want a system which is both resilient and inclusive and ensures that everyone has the chance to contribute and succeed. Level 7 apprenticeships are essential to that vision, so we cannot afford to lose them. Let’s hope that the Government thinks again.
