Apprenticeships in Higher Education Deemed Crucial for Economic Growth, Study FindsApprenticeships in Higher Education Deemed Crucial for Economic Growth, Study Finds A recent survey by the University Vocational Awards Council (UVAC) has revealed that 88% of Scotland’s top universities believe that apprenticeships in higher education and degree-level education are essential for boosting national economic growth and addressing the country’s skills shortage. The survey, which polled UVAC’s university members, explored the policy commitments and financial support the Labour government should prioritize to ensure that higher and degree-level apprenticeships meet the talent needs of Scottish employers. Key findings include: * 84% of respondents urge Labour to support the continued growth of degree and university apprenticeships. * 64% believe the government should reduce costs for universities delivering these apprenticeships in partnership with employers and diversify their offerings to cater to more business sectors. * 60% felt that the previous Conservative Party’s Apprenticeship Levy, funded through a compulsory contribution from employers, better supported apprenticeship delivery across all levels, ages, and occupations compared to Labour’s proposed Growth and Skills Levy. * 77% express concern that the Growth and Skills Levy could divert up to 50% of local employers’ salaries to non-apprenticeship training, potentially hindering the flow of top talent into apprenticeships. * 45% believe the Growth and Skills Levy will lead to fairer apprenticeships for both large and small employers, while 32% anticipate increased funding for higher and university-level apprenticeships. Dr. Mandy Crawford-Lee, Chief Executive of UVAC, emphasizes the importance of continued support for apprenticeships under Labour’s government: “It is vital that Labour secures the future of apprenticeships for all ages and qualification levels. They play a crucial role in promoting social inclusion, strengthening the economy, and tackling the skills gap.” The study highlights the significance of apprenticeships in higher education and the need for the Labour government to address concerns about potential funding reductions and the impact of the Growth and Skills Levy.
A staggering 88% of Scotland’s top universities believe that apprenticeships in higher education and degree-level education are key to the newly elected Labour government’s ability to boost national economic growth and tackle the country’s urgent skills shortage.
The University Vocational Awards Council (UVAC) survey of its university members explores what policy commitments and financial support the new government should make to ensure that higher and degree-level apprenticeships meet the talent needs of employers in the country.
Respondents strongly believe that Labour should continue the progress made under the previous government on degree and university apprenticeships, with 84% urging Labour to support their further growth.
From a financial perspective, 64% believe the new government should help universities reduce the costs of delivering degree and university-level apprenticeships in partnership with Scottish employers, and help them diversify their offering to meet the needs of more business sectors.
With attention focused on how businesses across Scotland will contribute to funding apprenticeships, the research examines the impact Labour’s Growth and Skills Levy will have when it replaces the Conservative Party’s Apprenticeship Levy, which is funded by a compulsory 0.5% contribution from employers with wage costs of more than £3 million.
Although the Apprenticeship Levy faced objections, particularly from levy-paying organisations across Scotland, and was seen as another form of corporate tax, 60% of universities felt the Apprenticeship Levy better supported the delivery of apprenticeships across all levels, ages and occupations compared to Labour’s new funding solution.
However, to give businesses paying the current levy a boost, 28% thought apprenticeships for 16- to 18-year-olds should be paid for through general tax, in the same way as A-levels, T-levels and Applied Generals.
More than three quarters (77%) of respondents are concerned that Labour’s Growth and Skills Levy could result in local employers having to spend up to 50% of their salaries on non-apprenticeship training, hampering the inflow of top talent into the country via apprenticeships.
Supporters of the introduction of the future Growth and Skills Levy believe it will lead to improvements in business, with 45% believing it will deliver fairer apprenticeships for both large and small employers across Scotland.
Around a third (32%) believe that more funding will be made available for apprenticeships at higher and university level than the previous government, and 36% believe that social mobility in relation to the provision of apprenticeships will increase.
One of the big problems under the previous government was that around 20% of the annual budget for apprenticeships was allocated to degree apprenticeships. 77% of universities felt that under the Conservatives this was not enough to meet the needs of businesses across the country.
Dr Mandy Crawford-Lee, Chief Executive of UVAC, commented: “Given that there is still some uncertainty around Labour’s skills policy and how it will deliver on its manifesto promises, we were keen to gauge the mood among universities delivering higher and degree apprenticeships in partnership with Scottish employers of all sizes.
“Our members clearly believe that it is vital that Labour continues to secure the future of apprenticeships and make them available to people of all ages and qualification and skill levels, so that a change of government does not hamper their growth.
It seems unthinkable that funding for apprenticeships in higher education and at university level is at risk when you consider how important they are for promoting social inclusion, strengthening the economy and tackling the skills gap across all sectors.
“Our research is a real eye-opener for what higher education and vocational training could look like under the newly elected government. We urge Labour to take to heart our findings and the views of both the country’s universities and the employers responsible for their provision.”
For more information on how UVAC supports universities and employers in delivering degree and university-level apprenticeships, visit www.uvac.ac.uk.
