Keir Starmer announced new apprenticeship reforms at the Labour Party conference. We still await details, but one of the proposed changes is to reduce the funding employers receive for level 7 apprenticeships.
Currently, employers can receive up to 95% of the cost from the government if they are a small/ medium business. Larger businesses can use their levy funds.
What is a level 7 apprenticeship?
A level 7 apprenticeship is equivalent to a master’s degree. It is used for professional careers such as solicitors, chartered accountants, and specialist nurses. Apprentices spend 80% of their time working in their chosen career and 20% working towards a qualification.
Why are these changes happening?
The main reason for the changes is to save money. The government funds apprenticeships to increase opportunities for young people to enter employment and to help with social mobility.
Apprenticeships currently cost the government £220 million. Labour wants to focus more on foundation and functional skills apprentices. The theory is that these would fit more with the aims of increasing employment opportunities for young people and increasing social mobility.
Due to level 7 apprenticeships being more ‘master’s level’, there is a risk they are only being used to increase the skills of people already with good education and already in employment.
Why we are asking the government to consider funding level 7 apprentices on a course-by-course basis?
The details surrounding these changes have not been announced yet. Our hope is that exceptions will be discussed and considered when looking at level 7 funding. The aims of promoting young people into the workforce and increasing social mobility are hard to argue with and something we at Attwells are also passionate about.
Reducing funding to level 7 apprentices runs the risk of removing opportunities into professions where a qualification equivalent to a master’s is mandatory to perform your career. For example, to be a solicitor you require a degree, but you also require an SQE which is the level 7 component. Therefore, you have some level 7 apprenticeships that are not adding extra knowledge to people in the workforce already but are allowing young people to enter these professions from school.
With the solicitor apprenticeship costing around £27,000, small/medium businesses would not be able to keep offering as many places. In England and Wales, 99.9% of private businesses are small/medium-sized. Funding from the government therefore allows more firms to offer more placements and therefore more employment opportunities for young people.
The legal profession has historically had diversity issues. One of the factors in improving diversity in the legal profession has been the increase in apprenticeships. It allows people to qualify as a solicitor without having to go to university or fund the SQE course. Without these opportunities, people wanting to pursue law would need to go to university and then potentially fund the postgraduate course ( SQE), adding more barriers into the profession, especially for those from low economic families.
Although some larger firms may still be able to offer the same amount of apprenticeships, the overall number will be less. Usually, larger firms are concentrated in areas such as London, Birmingham, and Manchester. Again, this limits options for people who wish to stay with their family due to being a carer or having other responsibilities that tie them to a location. Therefore, reducing funding for level 7 apprentices will likely impact diversity and social mobility in progressional careers such as Law.
What does this mean for employers?
Whilst we do not know for definite what exact changes are going to happen, if the funding is removed and you are currently relying on this as part of your growth and recruitment strategy, it would be wise to consider alternative plans from September 2025.
For example, law firms may need to revert to hiring more people who have already completed their SQE or are self-funding.
Currently, funding is still in place, and with some learning providers offering January intakes, employers may want to make the most of the funding while it is still running.
What does this mean for current/ aspiring apprentices?
The government has expressed that these changes would not impact any current apprentices already on a level 7 apprenticeship. Any changes will likely start in September 2025.
It may make placements more competitive if funding is reduced. Please see our other blogs for advice on ‘how to stand out’.
What can employers/current apprentices do to help?
We encourage all employers who are offering level 7 apprenticeships to lobby/write to their local MP and ask them to have consultation period about this and consider what these funding changes mean.
Current apprentices can also help by writing a more personal case study of how their apprenticeship has helped them to succeed and all the benefits they are currently receiving.
Summary
The government limiting funding for level 7 apprenticeships will likely see a decline in apprenticeship placements and therefore employment opportunities. Apprenticeships help break down barriers into not only Law but all career paths which could be inaccessible to young people without them.
Our blogs and articles are correct at the time of writing.
These have been created for marketing purposes only and should not be considered as legal advice.
