Proposal to redirect £240m from degree apprenticeships to NEETs
UKPulse Local Desk
A new proposal suggests redirecting up to £240 million annually from degree apprenticeship funding to support programmes for young people not in education, employment, or training (NEETs). The Resolution Foundation argues this would be a more effective use of the Growth and Skills Levy.
- The Resolution Foundation proposes ending Growth and Skills Levy funding for degree apprenticeships to release up to an additional £240 million annually.
- This funding would be redirected to programmes supporting young people who are NEETs.
- Under the proposal, degree apprenticeship tuition would be financed through tuition fee loans, similar to other higher-level qualifications.
A proposal from the Resolution Foundation suggests reallocating up to an additional £240 million per year from degree apprenticeship funding to support young people who are not in education, employment, or training (NEETs).
The think tank argues that the Growth and Skills Levy, which currently funds degree apprenticeships, could be more effectively used to help NEETs. Their research indicates that over 25s account for more than two-thirds of levy-funded degree-level apprenticeship starts, with many already employed by their employer before starting the apprenticeship.
Under the proposed model, degree apprenticeship tuition would be financed through tuition fee loans under the Lifelong Learning Entitlement, repaid on income-contingent terms. Employers would continue to pay wages and provide on-the-job training, and could still choose to pay some or all of the tuition fees.
The Resolution Foundation believes this shift would not only help NEETs but also boost apprenticeships by removing the current cap on degree apprenticeships, allowing them to expand.
Why this matters: The proposal aims to rebalance funding towards younger people and those not currently in employment or education, potentially increasing support for NEETs.
What this means for you: If implemented, this proposal could change how degree apprenticeships are funded, potentially requiring apprentices to take out tuition fee loans. It could also increase funding for programmes aimed at young people who are NEETs.