‘Apprenticeship levy: beware unintended consequences’

The growth in MBA apprenticeships is one result of the apprenticeship levy – and one that was surely not part of the government’s reform plan
5th May 2018, 8:38am

When you give someone ownership of something, it can go one of two ways: it can lead to their feeling empowered, resulting in innovation and their new responsibility being handled with maturity and confidence. Or things can go in a direction that was not intended and is to the detriment of all those involved.

The jury is still out on whether or not apprenticeship levy-paying employers being given the power to decide how to spend their levy funds will benefit the economy, apprentices and providers. Just over a year in, though, a Tes investigation reveals the growth of MBA apprenticeships: one consequence that I am pretty sure was not at the heart of the government’s plans when their reforms were conceived.

You cannot blame universities. By and large, these are commercially savvy organisations that can spot an opportunity and capitalise on it in a way that, frankly, few FE colleges are able to do. With many HR departments of large levy-paying employers trying to get to grips with the new apprenticeship system, I can also see the appeal for them.

The big prestigious universities are essentially saying “if you hand us your levy money, we will offer a great opportunity for your aspiring management without any trouble for you or the need for a complicated system”. So why wouldn’t companies take them up on it? Especially when a few management apprenticeships at £18,000 will take care of the levy funds much faster than dozens of lower-level apprenticeships. It’s the easy option. And a great way, I am sure, to reward staff. But that is not what the levy, or the apprenticeship reform programme, was meant to be about.

FE should be at the heart of creating opportunities in this area and making the most of this new marketplace - for their own sakes and for those for whom an MBA is a million miles away. Colleges have links with industry in spades. They should build on those, alone or along with other colleges, so that the apprenticeship money train does not leave without them.