“This decision to scrap level 7 funding for people aged over 21 will come as a major blow to the thousands who rely on this route into highly-skilled roles that support the wider economy.
“The average starting age of a level 7 ICAEW apprentice is 22, therefore the unintended consequences of a policy that strips funding from this cohort will undoubtedly have a profound impact for firms, the skills pipeline and the health of the wider economy. While we understand and support the idea of an age concession, the likely effect of a 16-21 exemption is a skew in recruitment towards school leavers, who typically follow a longer pathway to qualification as a chartered accountant.
“These changes, coupled with uncertainty over the implications for employers of the Employment Rights Bill, increasing costs to employers, and future UK visa constraints, mean that we have significant concerns about this decision restricting UK economic growth. Not only will this impact the attractiveness of recruitment into the professional services, it runs the risk of UK businesses choosing to offshore work.
“It also flies in the face of the government’s commitment to its growth agenda, especially after it included professional and business services as a key growth-driving sector in the new industrial strategy. Skills are critical to the growth prospects of businesses and economic growth, and apprenticeships help to close that skills gap – so they must be protected and enhanced at all costs.
“We will work closely with firms, apprentices and training providers to help them navigate this period of change, and remain committed to an open dialogue with Skills England and employers to ensure access to talent is protected. However, our position remains that an age exemption of 18-25 would be an effective compromise that supports the government’s wider objective for growth. We would urge the government to closely monitor these changes through the lens of economic growth and reconsider if they have been effective in a year's time.”
ENDS
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Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 208,000 members and students around the world.
Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor around 12,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
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We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.
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