Plans to defund master’s-level apprenticeships except for those aged under 21 have been confirmed by the Westminster government, despite the move previously being branded “ridiculous”.

Education minister Bridget Phillipson has announced a “refocusing” of apprenticeship funding in England, with level 7 opportunities for older learners no longer being funded via the apprenticeship levy from January 2026. 

Existing apprentices studying at level 7 will continue to be able to access funding, as will those aged between 16 and 21. 

This latter concession will make little difference in reality however, given most under-21s are not in a position to study at this level. Sector leaders previously said this was a decision “bordering on the ridiculous” when ����Vlog reported it was being considered earlier this month.

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Prime minister Keir Starmer announced the intention to “rebalance” apprenticeship funding last autumn, after years of criticism that too much of the money raised by the apprenticeship levy – a tax on the payroll of larger employers – was spent on level 7.

The move is seen as a way of unlocking more opportunities at lower levels for young people as opposed to funding the career development of older learners, many of whom are already in work and have existing high-level qualifications.

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But universities have argued that, if Labour is to achieve its economic growth aims, higher-level skills training is also needed.

Vivienne Stern, chief executive of Universities UK, said that universities had grown level 7 provision “encouraged by government and employer and student demand” and they had proven to be “extremely valuable to many sectors and essential public services”. 

“The exemption for those aged 21 and under will leave so few students on these courses eligible for funding that many will become unviable at a time when Skills England’s forecasts show we need more high-level skills in the economy,” Stern added. “We recognise the tough fiscal choices government faces but supporting early careers need not come at the expense of upskilling and retraining the existing workforce.”

Wrangling between the Department for Education and Department of Health is thought to have held up the move, with concern about how the defunding could affect apprenticeships in healthcare roles, needed to staff the NHS.

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Phillipson announced little further detail about the plans, focusing instead on the opportunities the government is creating for young people. 

A “record-breaking” £3 billion apprenticeship budget will “open up opportunities for young people to succeed in careers the country vitally needs to prosper”, the DfE said.

“More routes into skilled work means more people building affordable homes, more care for NHS patients and more digital experts to push our economy forward. This includes an additional 30,000 apprenticeship starts across this Parliament.”

Starmer previously indicated employers would be asked to take on the funding of higher-level training for staff.

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The coming Lifelong Learning Entitlement is also seen as a way of funding adults wishing to retrain or learn new skills, although, as currently envisaged, the learner will need to bear the cost of this themselves.

Jamie Roberts, policy manager for the Russell Group, said: “We are disappointed at the removal of funding for level 7 apprenticeships, which are effective at upskilling and retraining people to meet workforce needs – particularly in the public sector and most notably in the NHS. 

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“As well as the direct impact, universities across the sector will be concerned about the effect on wider apprenticeship provision. Without level 7 it may not make economic sense for some to continue with any apprenticeship provision. This could be a significant loss at a time when apprenticeship demand is rising. Universities can make a real impact on filling skills gaps, but only with sustainable funding and a clear long-term strategy.”

tom.williams@timeshighereducation.com