We have known for some time that the government was considering a change to L7 Apprenticeships as a government-funded programme, and now we know the detail and the timelines involved.
From January 2026 there will be a re-focusing of the funding, moving it away from L7 Apprenticeships, however, there are some exceptions. Access to L7 Apprenticeship provision will be maintained for those aged 16-21 years old and any learners of any age already on programme when the change kicks in. This caveat may be seen to be supporting the government’s Youth Guarantee commitment.
So, what does it mean? Well, from January 2026 employers will only be able to use their Levy for an Apprenticeship at Master’s level for those in the ring-fenced age bracket. If they wish to support staff in attaining L7 Apprenticeships, they will have to pay for this from their own training / work-force development budgets, alternatively individuals will have to meet the cost of their own study.
In addition, the number of learners in scope in terms of being in the age groups that are protected from the funding cull are relatively small; analysis for the most recent full academic year, 2023-24, shows that out of 23,860 Level 7 starts, 468, or 2%, were for under-19s, while 7,995, or 34%, were aged 19-24. The government only publishes data on Apprenticeship starts in three age groups: under-19s, 19- to 24-year-olds, and 25-plus.
It means very few level 7 apprenticeships will remain viable from January, with only the solicitor and accountancy and tax professional standards clocking up sizable volumes of starts for under 25s.
Comment from one of the region’s leading university’s highlighted their frustration on hearing the news: “The government decision to defund Level 7 Apprenticeships for the majority of employees is disappointing when they contribute directly to the Secretary of State’s priorities for higher education to widen access and improve outcomes for disadvantaged students.”
Just under £240 million was spent on Level 7 Apprenticeships in 2023-24, but the DfE have not yet confirmed how much would be saved by removing levy eligibility now the age cap is in place. There is a real focus by Labour on moving the Apprenticeship budget towards training at a lower level, where they hope there will be the greatest impact.
Confirmation of the L7 changes came amidst a raft of other skills/ education announcements that included a boost to the Apprenticeship budget, and £132 million for Skills Bootcamps in priority sectors.
A final comment from another of the region’s leading Higher Education Institutes, which highlights their concerns as to the impact the removal of L7 funding will have on some of our key services: “The proposed restriction of Level 7 apprenticeship funding poses a significant challenge to the South West, where sectors such as health and social care rely heavily on these programmes to develop specialist, advanced practice roles.
“These apprenticeships have become vital to addressing regional workforce shortages and ensuring services are equipped with the high-level skills needed to meet growing demand. The risk is not just to education providers, but to the sustainability of essential public services. We remain committed to working collaboratively with employers, professional bodies, and government to help shape a responsive, future-focused skills system.”
