Your Weekly Apprenticeship Insights Newsletter | 📉 What £13.9B in R&D Funding Means for FE and Skills

🚀Accelerate People at Engage 2025: Tech-Driven, Human Focused

At last week’s Engage 2025 Apprenticeship Branding Conference in Birmingham, Accelerate People joined voices shaping the future of apprenticeships—from leading employers to emerging apprentice leaders.

The event provided a vital platform to explore how branding, inclusion, and innovation can come together to elevate apprenticeship experiences across the UK.

A standout moment came from Santina Bunting (Arup), who spoke passionately about the importance of representation and relatable role models in STEM. Her message? Empowerment begins when young people can see themselves in the story.

We also tuned into the AI panel, where Derrin Kent (TDM) highlighted that AI should support inclusion, not hinder it. This aligns closely with our own work—leveraging AI to improve consistency and accessibility, while keeping fairness and the learner experience front and centre.

SKILLS DEVELOPMENT

Massive £13.9 Billion R&D Funding to Boost Skills and Talent Pipelines

The substantial £13.9 billion R&D funding signifies a transformative boost for the UK's skills and talent pipelines, especially within the FE sector. This investment directly supports critical projects like wind turbine research and addresses vital areas such as drug-resistant bacteria. The comparison highlights the need for FE institutions to showcase their broader impacts, similar to how the Met Office justifies its funding through demonstrating an impressive return on investment.

Furthermore, with this funding, there is an opportunity to enhance career advice, youth education programmes, and T Levels. The focus on digital skills, emphasised by a shock from recent reports indicating a digital skills gap in youth, underscores the urgency of incorporating AI and digital governance training. As Ollie De Botton assumes his role as an expert adviser, the challenge lies in effectively communicating the value of FE and Skills initiatives to the government to ensure sustained growth and development in these critical sectors.

APPRENTICESHIP TRENDS

Kaplan Tops Apprenticeship Revenue Charts as Level 7 Verdict Looms

Kaplan Financial Ltd has emerged as the top earner in the apprenticeship sector, generating £51.7 million from both levy and non-levy-funded programmes in the 2022-23 period. Despite having fewer apprentices than competitors, Kaplan's focus on high-value level 7 programmes—accountancy and taxation—has proved financially advantageous. Meanwhile, QA Ltd and Multiverse Group Limited have also seen significant growth, with revenues of £47.5 million and £44.1 million, respectively. QA's specialism in IT and business aligns with higher funding bands, while Multiverse benefits from its tech-driven approach and expansion into higher-level apprenticeships and international markets.

The apprenticeship revenue rankings underscore the sector's shift towards higher-level qualifications, echoing government plans that may require employers to invest directly in level 7 training beyond the current funding scope. This potential policy change could significantly influence the strategic direction of major apprenticeship providers. Additionally, public sector bodies, alongside educational institutions like The Open University, highlight the diverse sources contributing to the apprenticeship ecosystem.

SKILLS DEVELOPMENT INITIATIVES

Funding Extended for Local Skills Improvement Plans Until September 2025

Ministers have secured funding to support Local Skills Improvement Plans (LSIPs) until September, ensuring the continuation of pivotal skills development initiatives. Each employer representative body managing England's 38 LSIPs will receive £100,000 for operations from April to September. This interim funding precedes a potential re-evaluation of allocations expected during the upcoming Spending Review in June. An additional £20 million has also been injected to foster collaborations between colleges and construction firms, aiming to boost teaching expertise in construction sectors.

This strategic financial backing is recognised for enhancing local workforce capabilities, albeit temporarily resolving long-term funding uncertainties. The future of LSIPs will hinge on a competitive commissioning process, possibly offering more influence to local mayors and strategic authorities. Gareth Thomas of the East Midlands Chamber highlighted the necessity for cohesive collaboration among authorities to streamline and enhance regional growth plans. The success of these efforts will largely depend on efficiently gathering and utilising intelligence to support both LSIPs and related strategic development frameworks.

APPRENTICESHIP SUPPORT

Employers Must Support Apprentices With Progression Paths, Flexibility, And Financial Aid

Apprenticeships remain a vital pathway into skilled professions, but current challenges necessitate employer action for improvement. Employers can support apprentices by outlining clear career progression paths, which help maintain motivation and alleviate stress about future uncertainties. Furthermore, flexible working arrangements can significantly ease pressure, enhancing the apprentices' work-life balance and retention rates. By adopting these strategies, businesses will not only retain talent but also cultivate a motivated and skilled workforce.

Financial constraints remain a major concern, with many apprentices earning lower wages. Employers can address this by offering financial support, such as travel bursaries or exam resit assistance. These measures not only aid apprentices' financial stability but also contribute to a more engaged and productive workforce. By addressing these key areas, employers have the opportunity to not only improve apprentice experiences but also foster a committed workforce capable of significantly contributing to the organisation's growth.

WALES - APPRENTICESHIP INITIATIVES

NTFW Prepares Comprehensive Manifesto for Future Welsh Apprenticeship Advancement

The National Training Federation for Wales (NTFW) is proactively working to bolster apprenticeships and skills within the region by devising a comprehensive manifesto ahead of the Senedd election. Despite facing a budgetary cut of £32.7 million by the Welsh Government last year, the NTFW is determined to campaign for the reinstatement of funds to ensure continued support for work-based learning. Their strategy includes lobbying politicians and engaging with significant government inquiries, notably highlighting the need for a well-articulated skills strategy that aligns with employer needs and student potential.

SCOTLAND - HERITAGE SKILLS INVESTMENT

Funding Boost to Preserve Scotland's Heritage and Traditional Skills

Scotland is set to preserve its traditional skills with the establishment of the Centre of Excellence for Canals & Traditional Skills near the Forth & Clyde Canal in Falkirk. In partnership with Historic Environment Scotland and backed by £3.7M funding from The National Lottery Heritage Fund, the centre aims to nurture heritage skills through training, employment, and volunteering opportunities. This initiative is part of a broader strategy to retain craft, engineering, and conservation skills crucial to the region's rich industrial heritage.

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