UVAC warns NEETs focus could undermine industrial productivity
3 Jul 2025
Government focus on reducing the number of young people not in employment, education or training (NEETs) will come at the expense of productivity, warned a leading apprenticeship organisation.
Chief executive of the University Vocational Awards Council (UVAC) Dr Mandy Crawford-Lee was criticising the decision to shift funding away from high skilled Master’s degree equivalent Level 7 apprenticeships in favour of aiding the youngest trainees.
From January, levy funding of Level 7 apprenticeships for apprentices aged over 21 will be cut. This will affect almost 90% of eligible recipients and leave employers facing an estimated £214 millionin additional training costs, calculates UVAC.
“It would seem that tackling NEETs is now the government’s policy priority at the expense of developing the skills provision needed for a highly skilled, world-beating economy,” said Crawford-Lee.
“It’s disappointing that the government places such little emphasis on the link between skills and productivity. We simply don’t believe that reducing Level 7 funding eligibility will make lower-level apprenticeships more attractive to engineering employers, or more importantly - reduce the number of young people not in employment, education or training (NEETs).
UVAC, the higher and degree apprenticeship voice for more than 80 universities, said data suggested that year-on-year Level 7 apprenticeship starts rose 13% in the last three years and five percent in the last year.
In addition, she said, the National Foundation of Educational Research had previously found that 90% of roles within firms across all sectors will require higher-level skills by 2035.
While public spending on Level 7 had not grown over the last three years, it accounted for around 10 percent of the Department for Education’s overall apprenticeship budget.
Crawford-Lee added: “Removing funding for those Level 7 apprentices aged over 21 indicates to us that the government is unfortunately not looking to prioritise the career and skills progression of engineering employees at every stage of their working life.”
Pic: National Apprenticeship Week