Skills England has identified accountancy as a growth profession. Now we need the talent pipeline to match

The publication of Skills England’s Sector Skills Needs Assessment for Professional and Business Services (PBS) should be a clarion call to policymakers, employers and the wider skills sector. This is a sector critical to the UK economy and one that is heavily reliant on higher-level skills and apprenticeships.

Accountancy is critical to the UK’s economic growth

PBS is the largest of the ‘IS-8’ key growth sectors by GVA, employing around five million people, approximately one in every seven UK workers, and is expected to require more than half a million additional workers over the coming decade. Crucially, 92% of projected additional employment in priority occupations is expected to require a qualification at Level 4 or above. As the Skills England report states: “Level 6+ routes are most important for Professional and Business Services.”

Within this sector, accountancy stands out as a critical profession. Skills England recognises it as a frontier industry that has grown at twice the rate of overall GDP over the past decade. Accountancy roles make up 20% of the priority occupations identified within PBS and also feature in three other ‘IS-8’ growth sectors.

Our own research reinforces the profession’s reach. Nine in ten employers surveyed work within or support Industrial Strategy priority sectors, 98% say accountancy and finance skills are important to their organisation’s success, and 100% believe these skills are important to the effective functioning of their local economy.

Whether organisations are investing in technology, expanding their workforce, entering new markets or improving productivity, accountants provide the information, analysis and financial insight needed to make confident decisions. Whilst the government’s skills discussions often focus on visible sectors such as construction, engineering and defence, strong accountancy skills provide the foundations that enable those sectors to succeed.

The growing shortage of qualified accountants

Skills England highlights growing demand for higher-level skills across PBS, with accountancy expected to experience both growth and significant replacement demand as experienced professionals leave the workforce.

This challenge is already being felt. Our survey of more than 150 employers found that 74% report a shortage of experienced, qualified accountants. More than half (55%) say accountancy and finance skills shortages have already affected their ability to grow or operate effectively, rising to 61% among SMEs.

The challenge is therefore not whether the UK needs more accounting talent, but how we ensure enough people enter the profession and progress to become the qualified professionals employers need.

This is where apprenticeships have become increasingly important.

Apprenticeships are the profession’s primary talent pipeline

Over the past decade, accountancy apprenticeships have transformed access to a profession with excellent career progression and earnings potential. Programmes from Level 2 to Level 7 have supported up to 18,000 apprentice starts each year, with more than 70% aged 24 or below.

These programmes combine practical workplace experience with globally recognised professional qualifications and, in the vast majority of cases, lead to permanent employment and long-term careers. They have also reduced financial barriers to entry, opening the profession to people from a much wider range of social and economic backgrounds.

Apprenticeships are therefore no longer simply an alternative route into accountancy. They have become one of the profession’s primary talent pipelines, supporting skills development, productivity and business growth.

At a time when Skills England is highlighting the importance of maintaining a strong supply of higher-level professional skills, protecting these pathways should be a priority.

A changing youth employment challenge

This matters not only because of skills shortages, but because of wider changes in the labour market.

The Government has rightly made youth employment a major priority as concern grows about the number of young people who are not in education, employment or training (NEET). However, the profile of this group is changing.

This is no longer solely a challenge affecting young people with low levels of educational attainment. The recent Milburn review highlights that a significant proportion of young people who are NEET hold higher-level qualifications, including A Levels and degrees. Graduate unemployment and underemployment are becoming increasingly important parts of the youth employment landscape.

If we want to tackle youth unemployment while meeting future skills needs, we need pathways that connect ambitious young people directly with skilled careers.

Accountancy apprenticeships are one of the strongest examples. They provide school leavers and graduates with a route into successful finance careers while supporting social mobility. First Intuition data shows that 71% of accountancy apprentices attended a state school, 46% had parents who did not attend university, and 73% came from households where the main earner was not in a traditional professional occupation.

Yet recent apprenticeship reforms risk undermining these pathways.

Level 7 funding restrictions risk moving the problem elsewhere

The decision to restrict Level 7 apprenticeship funding from January 2026 to those aged 21 and under will inevitably influence employer recruitment behaviour.

Many employers are already reviewing their talent strategies and placing greater emphasis on school and college leavers rather than university graduates. There are positives to this shift: more young people may enter professional careers earlier without accumulating significant student debt.

However, there is also a risk that we simply move the problem elsewhere.

If employers increasingly recruit school leavers instead of graduates, what happens to young people who follow a traditional university route, accumulate debt and then find that their chosen pathway has reduced their chances of entering their desired career?

Our research suggests the impact could be significant. Almost two-thirds (63%) of employers said they would decrease graduate recruitment because of the Level 7 funding restrictions, while 29% said they would have increased graduate recruitment had funding remained unchanged.

The age cap also risks creating arbitrary differences between young people. Those who take a gap year, complete an industry placement, study for a Master’s degree or attend a Scottish university may already be 22 by the time they graduate.

At a time when graduate NEET rates are increasing, reducing professional entry routes for graduates risks creating new youth employment challenges rather than solving existing ones.

This is particularly concerning when 96% of employers say Level 7 professional qualifications are important for developing talent, 92% say they help fill skills gaps, and 72% support more trainees because Level 7 funding exists.

A need for greater consistency

There is also a broader question of policy consistency.

Much of the Government’s apprenticeship and employment support is focused on young people aged 24 and below. The employer National Insurance exemption for apprentices, the Youth Jobs Grant, the extension of full apprenticeship funding for non-levy employers (and now levy-paying employers too), and October’s new non-levy apprentice hiring payment all apply to young people under 25.

Yet Level 7 funding draws the line at age 21, sending mixed messages to employers about the behaviour Government wants to encourage.

The evidence also challenges the suggestion that higher-level accountancy apprenticeships are primarily being used to train older, existing employees. Government data shows that 74% of starts across the four main accountancy apprenticeship standards since 2022/23 were aged below 25. Our employer research also found that 81% of Level 7 apprenticeship starts were under 25.

A more coherent approach to skills policy

If the Government’s objective is to improve opportunities for young people, a more coherent approach would align policies around a consistent definition of youth participation.

Applying a ‘24-and-below’ approach across the board would provide greater clarity for employers and learners while reducing the disadvantages faced by young people whose education or life journey means they do not reach a Level 7 programme before turning 22.

Skills England’s report should prompt a wider conversation about the future workforce.

If accountancy is recognised as an economically important profession, and demand for higher-level skills continues to grow, policy must support the talent pipeline needed to meet that demand.

Apprenticeships support social mobility, help employers address skills shortages and create opportunities for people who may otherwise be excluded from professional careers. They sit at the intersection of the Government’s ambitions for economic growth, productivity, social mobility and youth employment.

Skills England’s analysis suggests that the UK will need more accounting talent in the years ahead, not less.

The priority for policymakers must be keeping the apprenticeship system fully aligned with making that a reality.

By Gareth John, Director at accountancy training provider First Intuition