Apprenticeship Insights | 📉 ICAEW Warns Funding Shift Will Shrink Skills Pipeline

Accelerate People Are Live at AELP: Join Them at Stand 33 + Skills & Grills

📍 Accelerate People will be exhibiting at the AELP National Conference from 23rd to 24th June.

Find them at Stand 33 in the main exhibition area across both days.

They’re sponsoring the Skills & Grills networking evening on 23rd June, with a dedicated stand for relaxed networking.

Whether it’s assessments, policy, or partnerships, stop by to say hello!

APPRENTICESHIP POLICY UPDATES

🔍 A Short-Sighted Shift in Apprenticeship Funding

Finally, the announcement has officially been made.

Sam Sawyer, CEO of Accelerate People, shares her concerns about the government’s decision to restrict funding for Level 7 apprenticeships to those aged 21 and over from January 2026.

She highlights how this move risks shutting out adult learners, placing pressure on employers, especially SMEs, and undermining efforts to close skills gaps in critical sectors like AI, digital, healthcare, and finance.

With many of Accelerate People's apprentices already above the age threshold, Sam calls for smarter investment that supports upskilling at all levels—not just entry-level training.

APPRENTICESHIP PROGRAMMES

Foundation Apprenticeships Face Criticism Over Sector Exclusions and Training Duration

Foundation apprenticeships are launching with promise, aiming to provide 16 to 21 year olds—plus some up to 24—with paid entry-level pathways into key sectors such as construction, digital, and health and social care. However, the exclusion of high-demand industries like hospitality and retail has drawn concern, as these fields traditionally employ large numbers of young people and offer foundational career experiences. Additionally, the set eight-month training duration and modest funding bands, such as £3,000 for health and social care, raise questions about both clarity and commercial viability when compared to traditional level 2 apprenticeships.

While financial incentives of up to £2,000 per apprentice are likely to increase starts by SMEs, debate continues regarding the optimal programme length and sector focus. Success will ultimately depend on responsive engagement with both employers and young people, as well as adaptability to meet broader industry needs and deliver genuine career progression.

WORKFORCE DEVELOPMENT

Cuts to Apprenticeship Funding a ‘Major Blow’ - ICAEW

The government's decision to restrict Level 7 apprenticeship funding to those aged 16-21 from 2026 poses a significant challenge for the professional services sector, particularly impacting thousands of aspiring accountants and the broader skills pipeline. ICAEW highlights that the average starting age for Level 7 apprentices is 22, suggesting the changes risk excluding a crucial cohort from accessible professional qualification pathways, undermining both talent development and economic growth objectives.

ICAEW advocates for a more inclusive 18-25 age bracket, arguing that such a revision would better reflect industry needs and maintain recruitment momentum. Furthermore, these funding cuts coincide with other pressures—rising employer costs and tighter visa rules—which could prompt firms to offshore high-skill roles. Continued dialogue with government and sector bodies remains vital to safeguard access to talent and bolster the UK’s commitment to sustainable growth.

SKILLS STRATEGY

Phil Smith Drives Skills England’s Mission To Simplify The National Skills System

Phil Smith, chair of Skills England, is leveraging his substantial leadership experience to drive much-needed simplification and improvement within the UK’s complex skills and FE landscape. Despite the role being officially part-time, Smith’s dedication sees him investing extensive hours, engaging widely across industry, education, and regional stakeholders, and earning strong support from those he consults.

He maintains that Skills England holds sufficient authority to recommend and drive change, focusing on practical solutions rather than increasing bureaucracy or simply pushing for increased FE funding. Instead, Smith calls for collaborative approaches between industry and government, more transparent communication, and industry-led skills development—particularly as the rapid pace of change, such as AI adoption, demands greater agility. His clear aim is a more navigable, responsive system that supports relevant, future-ready skills.

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