UK government set to pull plug on MBA apprenticeships

A controversial MBA apprenticeship scheme that allowed companies in England to ship senior executives to

A controversial MBA apprenticeship scheme that allowed companies in England to ship senior executives to company university with money earmarked for on-the-work coaching is set to be axed.

The transfer to scrap the qualification was unveiled when the Institute for Apprenticeships and Technological Training, which administers apprenticeship requirements, printed a revised checklist of apprenticeship requirements subsequent responses from employers with all reference to MBAs eradicated.

The decision is anticipated to be verified in early June when the govt is because of to publish a review of MBA apprenticeships. 

The inclusion of MBAs as section of the government’s apprenticeship scheme was widely criticised as it diverted a large proportion of the funding away from place of work coaching. The funding for apprenticeships comes from a levy introduced in 2017 that involves employers with once-a-year wage costs earlier mentioned £3m to set aside an equivalent of .five per of their payroll.

Under levy procedures, employers are presented handle more than which skills can be classed as apprenticeships. Accredited strategies assortment from stage-two GCSE-equivalent classes for university leavers, such as coaching for shop employees, to degree-stage roles, such as legal professionals and nurses.

The MBA was bundled as a section of the stage-7 senior chief occupational normal.

Under the adjustments, employers will continue to be allowed to shell out the levy on superior-stage leadership coaching but it would be a lot less interesting as contributors would no for a longer period acquire a masters degree at the end of the programme.

Critics argued the MBA scheme was an abuse of the apprenticeship levy. In the initial whole calendar year right after the levy was introduced in April 2017, there ended up 375,800 new apprenticeship starts off, a 26 per cent fall on the same period of time in 2015/sixteen.

Nevertheless, the proportion of bigger-stage apprenticeships, equivalent to bachelor’s levels and earlier mentioned, enhanced from five.three per cent to twelve.8 per cent in the course of this period of time.

A examine by FE 7 days journal calculated that there ended up 6,387 starts off on MBA apprenticeship programmes up to the end of the initial quarter of 2019/twenty. Presented that every single of these classes can acquire up to £18,000 from the apprenticeship levy pot, up to £115m experienced been invested on the standard in that fiscal calendar year.

Jennifer Coupland, main govt of the institute, experienced as recently as January defended the MBA programme, which she claimed loaded capabilities gaps identified by employers.

Nevertheless, the most current responses from employers has demonstrated a shift in belief. “The employer group have built a distinct suggestion, which we are now consulting on,” the IfATE claimed.

The Department for Training claimed: “The schooling secretary is committed to maintaining an employer-led system, but is not persuaded the levy must be utilised to pay for workers, who are usually by now highly capable and highly paid out, to acquire an MBA.”

Enterprise educational facilities, which have benefited most from the progress in bachelor’s and masters-stage degree apprenticeships, expressed disappointment at the decision to get rid of the ability to acquire an MBA via levy funding.

“Better managers is what this nation desperately requirements,” claimed Anne Kiem, main govt of the Chartered Association of Enterprise Universities, which signifies the British isles sector.

“Taking the qualification out of the senior chief normal helps make it extremely unattractive for most of those people who have signed up for it to date.”