The recently announced shake-up of the Level 7 apprenticeship levy has left many employers asking: what now?
The changes set out by the government aim to provide more pathways into work for young people. But the changes, which include a new age cap, risk creating a skills vacuum at a critical time for businesses.
According to the World Economic Forum’s Future of Jobs 2025 report, analytical thinking remains the most sought-after core skill among employers (ranked by 70% of companies), alongside agility, leadership, creativity and tech literacy. If leadership teams are equipped in these areas, businesses will find it easier to meet the challenges and opportunities of a fast-paced, constantly evolving landscape.
There is understandable concern about how these changes could affect growth in the long-run, but employers should not panic – nor bury their heads in the sand. By acting quickly to lock in learning opportunities, they can ensure those in leadership roles have the skills needed to make real-world impact.
Don’t panic! There’s still time to act, with options to choose from
While the funding changes may feel like a curveball, there is still time for employers to act before the funding changes happen. Many popular Level 7 programmes for management roles, including the ones we offer at Henley Business School, are still accepting nominations until the end of the calendar year.
Apprentices starting before January 2026, regardless of their age, continue to receive full funding. So, there’s a clear window to apply. If you’re planning to push forward with leadership development, or have talent in your pipeline, it is worth speaking to an advisor now to make the most of current funding.
Conduct a skills gap audit within your teams
In today’s economy, specialist skills are valuable currency. But businesses don’t always have an accurate view of what’s missing.
A targeted skills audit will help to identify:
- Which roles are impacted by automation or tech disruption.
- Where emerging needs (e.g. data literacy, digital leadership, and AI fluency) are outpacing existing knowledge.
- What additional learning your future workforce needs to thrive.
Employers can use short employee surveys, team workshops or 1:1 interviews to uncover key gaps and opportunities.
The WEF report predicts seismic change: by 2030, AI, demographics, green transition, and digitalisation will displace 92m jobs, but create 170m new ones. With future-proofing in mind, prioritise strategic, analytical, and digital leadership skills.
Speak to senior leaders and top talent about their options now
Your high-potential talent may not know how these changes affect them, or what they could miss out on.
If you have colleagues considering a Senior Leader Apprenticeship or other postgraduate-level training, now is the time to initiate conversations about eligibility, programme options and the support available for learners.
It is worth taking time now to proactively identify who might benefit while funding still applies, and encourage them to think about how a Level 7 apprenticeship supports their long-term career goals.
Explore alternative learning options for post-levy
Funding for apprenticeships through the levy is changing. In this new landscape, employers should think about other ways that they can bridge the skills gap. By adopting a ‘mix and match’ approach to the development options available, employers can plug critical capability holes.
Short courses, micro credentials, employer-subsidised MBA or MSc top-ups targeted in-house training programmes, and executive coaching can all help teams navigate the choppy waters of change.
Contact learning providers about next steps
You don’t need to interpret government announcements in isolation. Learning providers (especially those who deliver Level 7 apprenticeships) are already helping employers to pivot and plan.
If I could implore employers to do one thing, it would be to reach out and ask questions. The best partners will help you to make the most of existing levy funds while they last, recommend alternative pathways if necessary, and offer advice on structuring internal talent pathways for future success.
Look for providers with proven experience in leadership and strategy development, teaching and learning underpinned by real-world business challenges, and an understanding of your sector’s needs.
Navigating the skills gap in a time of change
While the policy shift may impact how senior-level apprenticeships are funded, it doesn’t change the fact that strategic, future-focused talent development is more critical than ever. With generative AI, geopolitical shifts, and demographic changes reshaping the world of work, building strategic and analytical capability in the here and now is essential.
We believe in the value of lifelong learning for agile, resilient teams. While we can’t control funding decisions, our teams are ready to explain how employers can best respond to them.
Get in touch to discover how the right Level 7 programme could ignite lasting business transformation.
Dr Anne Dibley is Head of Post-Experience & Apprenticeship Programmes at Henley Business School.
