How employers can avoid a skills gap in a post-Level 7 world

The landscape of skills-based learning in the UK is changing. Last year, the government redefined the funding framework for Level 7 apprenticeships, in a bid to boost opportunities for young people.

Labour’s overhaul of the current system presents both opportunities and challenges. The new Growth and Skills Levy is set to increase learning pathways and open doors for early-career apprentices. This is a welcome development.

However, the withdrawal of the Level 7 levy risks creating a skills gap among the people tasked with driving innovation and responding to change. The announcement has even sparked concerns that the UK could fall behind in key industries such as engineering, digital and cyber technologies.

This is a key moment for organisations to focus on sustainable growth. Now more than ever, companies need leaders with the confidence and capability to navigate an increasingly complex business environment.

n our fast-paced world, essential skills can stagnate as senior teams tackle everyday crises and challenges. Level 7 Senior Leader Apprenticeship (SLA) programmes give employees the space and structure for deep thinking, strategic engagement and work-based learning, surrounded by a network of peers.

The active, experiential style of teaching practiced at Henley enables new learning to be directly applied to real-world business challenges. The work-based projects produced by apprentices highlight the direct impact the skills gained during the programme can have on productivity, leadership and innovation.

However, announcements at the most recent Labour Party Conference suggest that the Level 7 SLA standard is likely to be withdrawn from levy funding in the near future. Instead, levy funding may be focused on the development of younger learners. This is laudable as a strategy to support young people’s readiness for the workplace. But firms must not forget the importance of continuing professional development for their existing managers.

More than ever, today’s complex business environment requires leaders to grapple with existential challenges relating to performance, sustainability, and new technologies. In the World Economic Forum’s (2023/24) top 10 list of skills needed in the workplace, analytical thinking takes the number one spot. Creative thinking comes in at second place. According to the World Economic Forum’s prediction, analytical and creative thinking will retain the top spots for required skills over the next five years.

Decisions made in boardrooms and executive suites can steer companies through choppy waters or cause them to run aground. As managers progress to senior leadership roles in their companies, the ability to react and adapt to future developments is vital. Strong analytical, creative and critical thinking skills lie at the heart of good decision making. It is therefore alarming to note that these are precisely the areas where a clear skills gap exists.

Employers are understandably concerned that levy funding changes could widen this gap. Many have seen first-hand the immense value of management apprenticeships, particularly in areas such as strategic and operational leadership, and future planning. That’s why it’s critical for employers to continue investing in skills-based learning.

Businesses need to think through their talent management strategy, and conduct essential skills audits, so that employees can continue to benefit from the transformative learning experiences that Level 7 apprenticeships offer. These programmes will still be available but probably not accessible through levy funding.

There is a smorgasbord of professional development options to explore. Learners can complete shorter, customised or open corporate development courses, as well as MBA or MSc qualification programmes. Internal and employee-led training may also bridge the learning gap, especially when combined with development opportunities provided by professional bodies. In the meantime, making the most of Level 7 levy opportunities before they are withdrawn is a no brainer for businesses.

The message for employers is clear: be proactive about the opportunities still available. By leveraging the current Level 7 levy funding, and exploring alternative development pathways when it is withdrawn, businesses can future-proof their leadership teams.

The challenges of today’s fast-evolving world demand leaders with sharp analytical and strategic thinking skills. By acting decisively now, employers can ensure their teams are equipped to drive businesses forward.

A version of the article was published by HR Magazine in January 2025