The restriction of levy funding for level 7 apprenticeships is a significant concern for the logistics sector.
- The University Vocational Awards Council (UVAC) highlights the widening skills gap due to funding cuts.
- Logistics employers stress the financial impact on developing managers and specialists.
- Research indicates that 90% of logistics roles will require higher skills by 2035.
- The new Growth and Skills Levy may further affect apprenticeship numbers.
The logistic sector faces a critical issue as plans to restrict levy funding for level 7 apprenticeships threaten the development of skilled employees. The University Vocational Awards Council (UVAC) has branded this move as a major blow, emphasising the potential widening of the skills gap within the industry. Such apprenticeships, equivalent to a master’s degree, are crucial for nurturing future managers and specialists.
A comprehensive report by UVAC, in collaboration with Sheffield Hallam University, sheds light on the importance of training apprentices across all ages to meet future job demands. The report underscores the crucial role of older apprentices in a dynamic labour market, particularly highlighting the impact on firms’ growth, employee retention, skills, and productivity.
Dr Mandy Crawford-Lee, chief executive of UVAC, stated that cutting the levy funding for level 7 apprenticeships would have far-reaching consequences. “It will largely affect those businesses with apprentices aged over 25 that rely on the current financial support to meet the cost of upskilling,” she commented, noting that the government’s focus on economic growth and social mobility seems contradicted by such policy changes.
Research from the National Foundation of Educational Research underscores the necessity of higher-level skills, projecting that by 2035, 90% of roles in sectors such as transport and logistics will require such skills. This highlights an increasing dependence on degree apprenticeships at levels 6 and 7, essential for the broader economy and varied industries, not merely logistics.
While the introduction of the new Growth and Skills Levy aims to incorporate foundation apprenticeships, there is concern over its impact. The logistics industry has voiced a pressing need for reform, pointing to a steep decline in apprenticeship numbers for those under 25 since the Apprenticeship Levy’s implementation. The potential consequences of this new levy structure raise questions about the future of skill development in logistics.
The impending restriction on levy funding for level 7 apprenticeships could significantly impact the logistics sector’s ability to develop its future workforce.
