Recent headlines highlight increasing doubts about the long-term sustainability of higher and degree apprenticeships. The proposed Growth and Skills Levy—set to replace the Apprenticeship Levy as part of Labour’s skills reform agenda has drawn concern from employers, providers, and education leaders alike. In particular, universities warn that changes could stifle demand, reduce flexibility, and threaten the viability of programmes that are currently bridging crucial skills gaps.
So why all the uncertainty?
The government’s plan for the Growth and Skills Levy is still limited in detail – especially around how funding for higher-level apprenticeships (Levels 4–7) will be protected. This lack of clarity is making it difficult for universities and employers to plan long-term.
Key points of concern include:
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Proposed withdrawal of funding for Level 7 apprenticeships (master’s equivalent) for those aged 21+, potentially starting in 2026. This could disproportionately affect professional sectors like planning, healthcare, and business leadership.
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No clear timelines or policy framework, making it impossible to forecast budgets or staffing needs.
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Employer confusion – with many being unsure whether future levy contributions will still fund apprenticeships or will be redirected to other training priorities.
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Looming budget pressure – last year’s apprenticeship budget was almost entirely spent, and with no guarantee of increased funding this year, providers are concerned about how far the next allocation will stretch.
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Calls for ring-fenced funding – from organisations such as the University Vocational Awards Council (UVAC) and the Royal Town Planning Institute (RTPI)—are growing louder, but no commitments have been made.
As reported by Personnel Today, the proposed changes to Level 7 funding could significantly restrict access for adult learners, undermining social mobility and professional progression. FE Week has also highlighted frustration among employers who feel left in limbo, unsure how to plan or allocate levy budgets for the coming academic years. According to UVAC, 69% of universities fear the reforms will reduce employer demand, with many warning of a substantial drop in programme uptake if protections aren’t put in place.
The RTPI has gone so far as to warn that over 80% of chartered planner apprenticeships could be lost under the current proposals – an example of how sector-specific damage could unfold without intervention.
Why it matters now
Higher and degree apprenticeships have become a vital channel, not just for widening participation, but also for attracting career-focused students who want practical learning and a clear ROI. With uncertainty in the air, student-facing messaging around these routes must now do two things:
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Clarify the current offer: What’s available now? How is it funded? What outcomes can students expect?
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Reinforce long-term value: Position apprenticeships as credible, future-proof choices, especially for sectors like healthcare, engineering, digital, and business.
How brands can respond
If your institution offers higher or degree apprenticeships, this is a timely moment to:
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Reassure prospective students by updating web content, FAQs and campaign messaging.
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Re-engage employer partners through proactive comms and joint storytelling.
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Differentiate the experience by showcasing student stories, tutor support, and career outcomes.
Whether reforms go ahead as planned or not, one thing is clear: the value of apprenticeships needs reinforcing. Now’s the time to act before uncertainty becomes confusion.