An education minister today refused to rule out removing level 6 apprenticeships from the scope of levy funding.
Education front benches clashed in a fiery committee stage debate on the Institute for Apprenticeships and Technical Education abolition bill.
There has been ongoing uncertainty over future funding of level 7 apprenticeships since prime minister Keir Starmer announced in September that some would no longer be funded through the apprenticeship levy.
Since then, employers and training providers have demanded clarity on when and how much funding will be removed for level 7 apprenticeships, and how new programmes, such as foundation and short apprenticeships, will be funded.
Scrapping all level 7 apprenticeships would save about £240 million a year from the maxed-out apprenticeships budget, which ministers want to reallocate towards “other priorities”.
Skills minister Jacqui Smith told the Apprenticeships and Training Conference earlier this week that an announcement on the reforms was “imminent”.
Janet Daby, who speaks for the government on skills in the Commons, this afternoon declined to answer a direct question on the future of levy funding for level 6 apprenticeships.
She was challenged by shadow education minister Neil O’Brien, who suggested ministers could place level 6 in the firing line next because “that’s the first place the money will go”.
“We keep asking, but without ever getting an answer. I invite the minister today to rule out axing level 6 apprenticeships in the way they are doing with level 7,” O’Brien said.
Daby said level 6 apprenticeships were “a core part of our offer”, adding “decisions on training and funding through the levy in the future will be guided by Skills England”.
O’Brien hit back: “I think that was a very clear not ruling out of doing exactly what they’re doing to level 7 apprenticeships to level 6.
“Ministers are clearly looking to keep their options open, not just on level 7, but on level 6 as well, which is very, very concerning … a real backward step and a real wrecking ball to a lot of the progress made on apprenticeships over the last decade.”
Jaws on the floor
That wasn’t the only part of Thursday’s debate that left O’Brien riled.
He was visibly frustrated when trying to get an answer from Daby on whether or not it was government policy to allow up to 50 per cent of Labour’s reformed growth and skills levy funding to be spent on non-apprenticeship training.
Education secretary Bridget Phillipson said in December: “We remain committed to reforming the failing apprenticeship levy and turning it into a growth and skills levy with up to 50 per cent flexibility for employers.”
Phillipson’s comments were consistent with Labour party messaging when it announced pre-election it would reform the apprenticeship levy into a more flexible growth and skills levy.
But the 50 per cent threshold was notably missing from the Labour’s manifesto – and sector experts have said it will be impossible to meet.
Daby deviated from her boss’s December remarks and today refused to confirm the 50 per cent threshold.
“I don’t want to put a target or limit on flexibility. This will be led by what employers need, driven by Skills England analysis,” she said.
O’Brien didn’t let up.
“Employers will be jaw to the floor, agog at what is going on with the DfE here. What is the policy? What an extraordinary situation. What a shameful situation. Unbelievable.”
“The government said that it would allow employers to take up to 50 per cent of the money and spend it on things that were not apprenticeships. Now, that either is the policy still, or it is no longer the policy. Which of those two things is the truth?”
Daby replied: “I will get back to him, and I’ll make sure there’s a written response.”
O’Brien could then be heard responding: “Absolutely unreal. Unreal.”
The committee will reconvene on Tuesday.
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