Universities fear reforms will reduce demand for accountancy apprenticeships, UVAC says

The government’s forthcoming apprenticeship reforms will deter many accountancy employers from upskilling their workforce via higher and degree apprenticeships, according to 69% of the nation’s universities, as uncovered by new research from the University Vocational Awards Council (UVAC). The study reflects the mood of pessimism surrounding reforms, with 45% believing the new Growth and Skills Levy will be more complicated for accountancy businesses to understand and 30% claiming it will increase the levels of bureaucracy and administration associated with the previous system. Despite one of the primary employer frustrations in the past being the use of unspent levy contributions returned to the Treasury, over a third (39%) of respondents felt the Growth and Skills Levy will actually increase the amount of unused funds. With higher and degree apprenticeships critical to helping accountancy firms develop future managers, business leaders or fill specialist and senior-level roles, 81% were concerned the new levy will reduce the number of employers training older apprentices aged over 25. From a social inclusion perspective, 55% felt it will lead to a decline of new apprentices from underserved communities. Although 72% of respondents felt employers should do more to attract younger apprentices, 89% felt the government’s other proposed reform to establish “foundation” apprenticeships for younger people will be at the expense of higher and degree apprenticeships. The growing concern that the current scope of higher and degree apprenticeships should be broadened to cater for more sectors is addressed by the findings, with around half of respondents fearing the new levy will cater for less industries. The study also explored what impact the government’s plans to restrict level 7 training funding will have on businesses. All survey respondents were unanimous that it will reduce the number of employers who engage with apprenticeships at this level. The majority of respondents also had serious concerns around the level 7 funding cuts, with 94% believing it will provide less opportunity for employers to upskill existing workforces. A further 75% said it will reduce the number of people achieving senior-level roles within organisations, whilst 72% claim it will cause a shortfall in employees filling specialist, technical positions. One of the few positives from the study is that 39% of respondents claim the planned reforms to provide shorter apprenticeships will help those employers that can't commit to a longer, 12-month minimum apprenticeship. Dr. Mandy Crawford-Lee, chief executive for UVAC, said: “Our research has really lifted the lid on some genuine concerns around the government’s planned Growth and Skills Levy, its announced level 7 funding restrictions and introduction of foundation apprenticeships. Many universities are worried about the impact these reforms will have on accountancy firms which rely heavily on higher and degree apprenticeships to address skills gaps, drive business growth, promote diversity and develop those in senior and technical roles. “We wholeheartedly support Labour’s drive to engage more younger people in apprenticeships, but this must not be at the cost of growing the number of programmes at higher and degree level. We’d therefore urge the government to ring-fence the funding of apprenticeships across all ages and levels and even invest more given that it has outlined its commitment to growing the UK economy and addressing the skills gap.”