May 19, 2024

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UK government set to pull plug on MBA apprenticeships

A controversial MBA apprenticeship plan that authorized providers in England to ship senior executives to small business faculty with income earmarked for on-the-occupation teaching is established to be axed.

The transfer to scrap the qualification was uncovered when the Institute for Apprenticeships and Technological Schooling, which administers apprenticeship expectations, published a revised listing of apprenticeship expectations pursuing opinions from businesses with all reference to MBAs eliminated.

The determination is envisioned to be confirmed in early June when the authorities is owing to publish a evaluation of MBA apprenticeships. 

The inclusion of MBAs as portion of the government’s apprenticeship plan was widely criticised as it diverted a large proportion of the funding away from office teaching. The funding for apprenticeships will come from a levy introduced in 2017 that calls for businesses with yearly wage expenses above £3m to established aside an equal of .five per of their payroll.

Below levy policies, businesses are offered control in excess of which skills can be classed as apprenticeships. Authorised techniques vary from level-two GCSE-equal programs for faculty leavers, these kinds of as teaching for shop staff, to degree-level roles, these kinds of as lawyers and nurses.

The MBA was bundled as a portion of the level-7 senior leader occupational typical.

Below the changes, businesses will even now be authorized to commit the levy on large-level management teaching but it would be considerably less appealing as members would no longer acquire a masters degree at the end of the programme.

Critics argued the MBA plan was an abuse of the apprenticeship levy. In the very first whole calendar year just after the levy was introduced in April 2017, there had been 375,800 new apprenticeship commences, a 26 per cent fall on the same period in 2015/16.

Nonetheless, the proportion of larger-level apprenticeships, equal to bachelor’s degrees and above, improved from five.three per cent to 12.8 per cent for the duration of this period.

A research by FE 7 days magazine calculated that there had been 6,387 commences on MBA apprenticeship programmes up to the end of the very first quarter of 2019/twenty. Offered that each individual of these programs can acquire up to £18,000 from the apprenticeship levy pot, up to £115m had been spent on the standard in that fiscal calendar year.

Jennifer Coupland, main government of the institute, had as not too long ago as January defended the MBA programme, which she explained stuffed capabilities gaps identified by businesses.

Nonetheless, the most recent opinions from businesses has proven a change in belief. “The employer group have designed a clear recommendation, which we are now consulting on,” the IfATE explained.

The Office for Schooling explained: “The instruction secretary is dedicated to preserving an employer-led system, but is not convinced the levy must be utilized to shell out for staff, who are typically presently hugely competent and hugely compensated, to acquire an MBA.”

Company educational facilities, which have benefited most from the advancement in bachelor’s and masters-level degree apprenticeships, expressed disappointment at the determination to eliminate the skill to gain an MBA by way of levy funding.

“Better managers is what this place desperately needs,” explained Anne Kiem, main government of the Chartered Affiliation of Company Colleges, which represents the Uk sector.

“Taking the qualification out of the senior leader typical will make it really unattractive for most of those who have signed up for it to date.”