New SMF report urges government to back universities to deliver high-level skills

A new report by the Social Market Foundation (SMF) has urged the government to cut bureaucracy and fix the funding issues hindering universities from delivering high-level skills provision such as degree apprenticeships.

The report, titled “Skills Sidelined”, underscores the vital need for higher-level apprenticeships in bridging workforce and skills gaps, particularly in key sectors such as healthcare, construction, and digital technology.

The report, sponsored by University Alliance, examines the Labour government’s skills policy, the current state of higher-level apprenticeships and what the government could do to optimise skills and apprenticeships policy to deliver greater economic and societal benefits. The SMF’s paper comes ahead of the government’s long-awaited plans for higher education reform as part of the Post-16 Education and Skills Strategy White Paper.

Higher-level skills provision is a vital but often overlooked area of England’s skills landscape. Referring to provision above A-Levels and T-Levels, high-level skills include courses designed collaboratively with employers to meet local skills needs, that combine academic study elements with hands-on workplace training.

High-level apprenticeships have surged in popularity to the point where today demand far outstrips supply – with over 500,000 skill-shortage vacancies.

However, ‘Skills Sidelined’ identifies how universities are being held back from providing more placements on these popular courses, due to poor funding incentives, bureaucratic challenges, and universities’ lack of involvement in government discussions on skills.

The report’s research draws on a series of focus groups and in-depth interviews with politicians, advisors, policy experts and stakeholders with expertise in skills policy and vocational training in England.

Vanessa Wilson, Chief Executive of University Alliance said:

“The SMF’s timely new report stresses how universities are vital to delivering the high-level skills the economy needs, and how they are being held back.

“Through degree apprenticeships and vocationally-focused education, Alliance universities teach high-level skills in crucial sectors like healthcare and construction. But they are being hamstrung by bureaucratic overload, financial disincentives and a shifting policy and funding landscape.

 “The government must not have tunnel vision when it comes to skills: without a balanced approach across all levels and ages, it will struggle to build a skilled, adaptable workforce.

“The government and Skills England should seriously consider the report’s recommendations to enhance its Industrial Strategy and to inform its Post-16 Education and Skills Strategy.”

Dani Payne, Head of Education and Social Mobility at Social Market Foundation, said:
“If the government is serious about tackling the skills crisis and delivering growth, it must unlock the full potential of our universities to provide high-quality, higher-level apprenticeships. These courses are proven to deliver the kinds of skills we urgently need – in sectors like healthcare, construction, and digital.

But right now, universities face a funding system that doesn’t reward this kind of provision, and layers of bureaucracy that actively make it harder to deliver. For the many universities that are willing to become providers, the system isn’t working with them.

The upcoming Post-16 White Paper is a crucial moment for the government to show it’s serious about building a skills system that works, and universities must be part of that vision.”

Policy recommendations include:

Creating more accountability for employers providing apprenticeships – by introducing a condition of using the growth and skills levy flexibly is that employers must take on a greater role and responsibility for skills training.

Integrating higher education providers into local skills planning – such as the development of Local Skills Improvement Plans (LSIPs).

Improving careers education advice and guidance – by ensuring every school leaver receives a minimum level of personalised careers support and careers provision is part of the new ‘report card’ judgements that Ofsted will be issuing to schools.

Improving funding and bureaucracy challenges for education providers and employers by:

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