The UK Government has announced plans to shift funding away from Level 7 apprenticeships to lower-level schemes as part of a broader £3 billion investment in skills training, aimed at creating 120,000 new opportunities by January 2026.
While this move is intended to boost early-career pathways and support individuals entering the workforce without academic qualifications, the reallocation of funding has prompted concern among business groups in the East Midlands. The region’s business community is wary that prioritising entry-level apprenticeships could limit routes for workers to develop advanced capabilities through work-based learning, particularly in sectors that demand specialist knowledge.
With skills shortages continuing to hamper recruitment, seven in ten East Midlands firms report difficulties in finding qualified candidates. As a result, employers are increasingly turning to apprenticeships as a means of building industry-specific talent pipelines. Business leaders warn that narrowing access to higher-level schemes could reduce flexibility for companies seeking to upskill existing employees or attract candidates into technical and leadership roles through non-academic means.
The business case, they argue, is not just about volume but about aligning training investment with real-world workforce needs, whether at Level 2 or Level 7. As the government reforms the apprenticeship system, maintaining a balanced approach to skills development will be critical for long-term business resilience.
