UK government set to pull plug on MBA apprenticeships

A controversial MBA apprenticeship scheme that permitted companies in England to send senior executives to

A controversial MBA apprenticeship scheme that permitted companies in England to send senior executives to enterprise faculty with cash earmarked for on-the-career instruction is set to be axed.

The move to scrap the qualification was disclosed when the Institute for Apprenticeships and Technical Training, which administers apprenticeship benchmarks, published a revised record of apprenticeship benchmarks subsequent feedback from employers with all reference to MBAs taken off.

The choice is expected to be confirmed in early June when the federal government is because of to publish a review of MBA apprenticeships. 

The inclusion of MBAs as portion of the government’s apprenticeship scheme was widely criticised as it diverted a big proportion of the funding absent from office instruction. The funding for apprenticeships comes from a levy introduced in 2017 that involves employers with once-a-year wage costs above £3m to set apart an equal of .five per of their payroll.

Less than levy policies, employers are supplied control above which skills can be classed as apprenticeships. Approved schemes vary from degree-two GCSE-equal courses for faculty leavers, such as instruction for shop staff, to diploma-degree roles, such as legal professionals and nurses.

The MBA was integrated as a portion of the degree-seven senior leader occupational common.

Less than the variations, employers will nevertheless be permitted to shell out the levy on large-degree management instruction but it would be less eye-catching as participants would no for a longer time receive a masters diploma at the conclusion of the programme.

Critics argued the MBA scheme was an abuse of the apprenticeship levy. In the initially complete calendar year right after the levy was introduced in April 2017, there were 375,800 new apprenticeship starts off, a 26 per cent drop on the exact same interval in 2015/16.

However, the proportion of better-degree apprenticeships, equal to bachelor’s levels and above, amplified from five.3 per cent to 12.eight per cent in the course of this interval.

A analyze by FE 7 days journal calculated that there were 6,387 starts off on MBA apprenticeship programmes up to the conclusion of the initially quarter of 2019/20. Given that just about every of these courses can receive up to £18,000 from the apprenticeship levy pot, up to £115m had been invested on the standard in that fiscal calendar year.

Jennifer Coupland, main executive of the institute, had as recently as January defended the MBA programme, which she explained loaded competencies gaps discovered by employers.

However, the hottest feedback from employers has proven a change in feeling. “The employer group have produced a very clear suggestion, which we are now consulting on,” the IfATE explained.

The Division for Training explained: “The instruction secretary is dedicated to keeping an employer-led procedure, but is not persuaded the levy should really be utilized to pay out for team, who are normally already highly experienced and highly paid out, to receive an MBA.”

Business enterprise educational institutions, which have benefited most from the advancement in bachelor’s and masters-degree diploma apprenticeships, expressed disappointment at the choice to take out the ability to obtain an MBA by levy funding.

“Better managers is what this country desperately demands,” explained Anne Kiem, main executive of the Chartered Affiliation of Business enterprise Colleges, which signifies the United kingdom sector.

“Taking the qualification out of the senior leader common tends to make it quite unattractive for most of those who have signed up for it to day.”