Businesses have been urged to futureproof their workforces ahead of the withdrawal of a key source of apprenticeship funding next year.
From January, funding will be scrapped for level-seven apprenticeships – equivalent to a master’s degree – for anyone aged 22 or over, with resources redirected to lower levels, where the government said they would have the greatest impact.
Industry figures previously warned that the plan would hit specialist roles, such as fire engineers, and training more widely, as employers scramble to plug the funding gap.
Steven Hurst, director of corporate learning at Arden University, said the construction sector often relied on level-seven apprenticeships to address leadership skill shortages and attract younger talent.
The scrapping of funding for older candidates would likely cause a “key pain point” for firms hoping to formally upskill more senior staff or increase the diversity of their top ranks, he warned.
“Construction firms need to act swiftly to capitalise on current funding opportunities before the December cut-off,” Hurst urged.
The narrowing window presented both a challenge and an opportunity for employers, he added: “Left unchecked, skills gaps and leadership deficits may exacerbate already critical workforce shortages, but organisations that proactively plan can not only mitigate these risks but also strengthen their position for the future.”
Hurst recommended that employers identify candidates in their current workforces and ramp up recruitment efforts while funding is still available.
Employees aged 22 or over should be prioritised for enrolment in the programme, he advised.
“With the age cap for funding set to change, targeting talent before the end of the year who will be ineligible to access funding from 2026 makes strategic sense,” Hurst said.
For organisations prevented by budget restrictions from funding level-seven apprenticeships next year, level-six schemes could be a viable alternative.
“Equivalent to degree-level qualifications, these programmes still deliver high-quality training while addressing workforce diversity and retention goals,” Hurst said.
According to research by the University Vocational Awards Council (UVAC), cuts to levy funding of level-seven apprenticeships next year will cost employers around £214m in additional training.
With almost nine in 10 level-seven apprentices aged 22 or over, the funding restriction risks widening the skills gap, hindering social inclusion and stifling economic growth, it said.
While the government had suggested there would be greater flexibility under its new growth and skills levy for construction firms – such as allowing employers to allocate unspecified levy funds to non-apprenticeship training and reducing the minimum duration of an apprenticeship from 12 to eight months – these measures were still to be finalised, the council noted.
“Until the government announces the policy detail around the […] levy, unfortunately, construction firms are in a state of limbo and will find it more challenging to plan ahead and forecast training budgets,” said UVAC chief executive Mandy Crawford-Lee.
In the meantime, firms should be aware of the wealth of higher and degree apprenticeships still available at levels four, five and six.
“We’d advise employers to maintain a strong dialogue with their local university and other higher and degree apprenticeship training providers to explore what opportunities are available to recruit more apprentice talent and meet a range of skills and business needs,” she said.