Level 7 apprenticeships are crucial to the sector’s competitive advantage

We published the following statement in response to the government’s announcement of Level 7 apprenticeship reforms.  

The financial services sector is one of the UK’s most productive sectors. It employs around one million people and produces £214bn in GVA for the economy. The importance of the financial services to the nation’s long-term prosperity is further evidenced by the government’s decision to name it a priority growth sector.

However, the sector is at a pivotal moment. The industry is facing technological and demographic change, with a quarter of the workforce (260,000 people) set to leave high-skilled roles over the next 10 years.

At least 16% of the workforce requires urgent upskilling and apprenticeships play a vital role in addressing this significant challenge. We welcome reforms that enable to firms to develop talent, but it is unclear how the removal of Level 7 apprenticeships will contribute to this goal. Qualifications at Level 7 are crucial to many areas of the sector’s competitive advantage, such as artificial intelligence, data analysis, taxation and accountancy specialists, actuaries, and digital technology professionals such as cyber security experts.

We must remain laser-focused on addressing the skills gaps by reskilling, upskilling, and increasing learning for existing workers, as well as building talent pipelines to meet future needs.

We know from engagement with our members that many firms are concerned about the potential removal of Level 7 apprenticeships. Not just because of the impact this would have on closing the skills gap, but also the risk that the sector falls behind on the global stage if its ability to build skills, at the highest level, is reduced.

That’s why we’re seeking assurances from Skill England that lost opportunities will be mitigated by the new Growth and Skills Levy in a way that encourages, and incentivises, employers to use levy contributions for the benefit of the workforce, industry and the wider UK economy.