The chancellor has drawn up plans to restrict the use of levy funding for degree-level apprenticeships, FE Week understands.
Multiple sources have said that Jeremy Hunt is concerned about the affordability of the levy amid a huge rise in the number of costly level 6 and 7 apprenticeships for older employees, while spending on lower levels and young people falls.
Treasury officials have now floated the idea of limiting the use of levy cash that can be spent on the highest-level apprenticeships, but the Department for Education is understood to be resisting ahead of next week’s Autumn statement.
Proposals include removing some apprenticeships – such as the popular but controversial level 7 senior leader standard – from the scope of levy funding, introducing age restrictions and demanding larger employer contributions.
