Under 22, How is this Transforming the FE and Skills Offer? | FE Soundbite 799

Welcome to FE Soundbite Edition 799: 31st May 2025 | Under 22, How is this Transforming the FE and Skills Offer?

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This is the weekly e-newsletter and e-journal by FE News: ISSN 2732-4095. We know life is busy, so here is a snapshot of the latest announcements and epic thought leadership articles from sector influencers and cool thinkers across FE and Skills this week on FE News.

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Gavin’s Reflective Perspective

£3 Billion Apprenticeship Budget

So we had a major announcement after the bank holiday. The Apprenticeship Budget is now £3 Billion for the first time. Now we don’t know what will be included in the Growth and Skills Levy, but we do have an idea on Apprenticeship budget.

Now according to several sources, the Levy ‘take’ from Employers is nearer to £4B. So will an additional £1B be added into the Growth and Skills Levy for those ‘flexibilities’ that we heard about? .. and what are those flexibilities?

Or… will Treasury use it for something else (like pot holes)?

So major league good news for Apprenticeships.

… oh wait.. we also had clarification on Level 7… and this short paragraph, not only shines a light on Level 7 funding, but on all Apprenticeship funding:

Refocusing funding away from Level 7 (masters-level) apprenticeships from January 2026, while maintaining support for those aged 16-21 and existing apprentices. This will enable levy funding to be rebalanced towards training at lower levels, where it can have the greatest impact.
AELP have been very keen to highlight, this means funding is for 22 years and under.

Why is Under 22 a Significant Shift?

The Richards Review Paradigm shift.. Doug Richards, remember him? Well the Richards Review was all about Employer choice. Well, the Richards review, is pretty much now defunct.
Employers were keen on Level 7 Apprenticeships, now from Jan 26, you need to be 16-21 to get funding (unless you are Dougie Howser – you will not be on a Level 7, anyone who has taken a few options and routes to get to their dream job, no, you are not making it either). From Jan 26, funding is available until 21, so you need to be pretty set in your mind and have opportunities to realise the similar options and opportunities that are available right now.

The All Age, All Level Apprenticeship System is Gone!

The all age, all Level Apprenticeship System, is pretty much gone. There will be pots of funding for key areas, like say Construction, or in regions… but that all Age, All Levels – from 2-7 (we should have developed a Level 8 for PhDs in my mind), has been wiped out. Interestingly, the day after the Level 7 announcement. Conservative MP Neil O’Brien shared data he just received that for Level 7’s the majority of learners studying were 22 and over (in fact it was nearly 90%).

How about NEETs? NEETs are calculated 16-24 years old, so what happens to the NEETs aged 22-24?

NEETs are calculated from 16-24 years old. So what happens if you are a 22 – 24 year old NEET now?
So NEETs – Not In Education, Employment and Training – are calculated 16-24 years old. So with funding being for (16 -21 year olds).. or under 22 years for Apprenticeships… what happens if you are a 22 – 24 year old NEET?
I know we have the Youth Guarantee.. but are the Government saying that 16-21 year olds are youth? What happens to the 22 to 24 year old NEETs? Where is their support?

On the Feb 25 NEET data, Ben Harrison, Director of the Work Foundation at Lancaster University highlighted: “Today’s figures appear to show that nearly half of NEETs are 22-24 years olds and risk missing out on initiatives such as the Youth Guarantee which as it stands will be available to 18-21 year olds”

Now, I am sure there is a joined up plan on all of this. Ha ha!?

Careers Advice and Guidance Has Now Become Even More Crucial To Get It Right First Time

Careers Advice and Guidance – is going to be absolutely crucial due to time / age restrictions
Now Careers Advice and Guidance, from early in someone’s career, for someone looking at school leavers, not going to lie, but you’d better get it right, as the hard deadline and hard stop for Under 22, means that routes need to be planned and sketched out in advance.

There is no room for mucking about… or what I would say… is life. Life isn’t linear or generally predictable in my experience. Life happening.. is usually a bit chaotic, unpredictable and it can take people a while to find their way.

So if you have to retake GCSEs, or change tact on a course… your middle-term funded routes could be affected. If you take time out for say childcare, or supporting a relative, again, routes and restrictions come into play. If you have say something like Covid happen again, again, this has major implications for young people and their future choices.

Interestingly, just last week, the OECD said that 46.4% of young people are uncertain about their career options – a rise from 24.6% in 2018. So Careers Advice and Guidance really needs to be sorted out and sorted out fast due to these announcements and policy shift.

How about returners, how about the economically inactive?

Now there is loads of talk about career changes for entry level roles – like Level 2, but not being funny, the Government has set targets to reach Level 3 and over anyway.

So it feels like options, routes and opportunities are being capped, and in reality this will be for the most disadvantaged, or for those with limited scope or access to high level careers advice. I am pretty long term concerned about this. Those who probably went undiagnosed with Neurodiversity, those who have struggled with mental health, teenage pregnancy, young carers… all could very seriously have very limited options, unless there is joined up thinking between DWP and DfE – which so far, I have not really seen since KickStart and ReStart in 2021.

Loads of other announcements, but I don’t want this to dilute away from taking in what this massive announcement (that was launched at midnight on Bank holiday Monday, during half term week)… there are still loads of questions to be answered.

So Many Questions Still Need To Be Answered

Like, what is the Growth and Skills Levy and what will it cover? (we’ve only been waiting about 8 months for the full details on this). What support is in place for NEETs, particularly older NEETs? Especially as half the number of NEETs are aged 22-24 years old.

What support will be in place to make sure that Careers Advice and Guidance is 100% better than it is now? What support will be in place for Career Changers, Returners to work (as this will be more and more of the norm as Agentic AI, CoBots and new technologies start to change jobs).
I am really pleased that there is more budget in Apprenticeships, I would feel much more comfy when we know what the Growth and Skills Levy actually is, and if all of the money taken from employers is actually going to be available to be used, or just a proportion?

Anyway, I hope you enjoy FE Soundbite this week.

Thanks to Hachette Learning for Sponsoring FE Soundbite this week.

Epic Exclusives Thought Leadership Articles

Our Top 3 Thought Leadership Articles This Week

Employers Urge Government to Extend Level 7 Apprenticeship Funding Beyond Age 21 By Gareth John, Director at accountancy training provider First Intuition

The Sacrificial Lamb: The End of Public Funding for the Level 7 Senior Leader Apprenticeship By Thomas Burton, Head of Apprenticeship Delivery, York St John University

AI Isn’t the Enemy of Critical Thinking, It Might Be the Best Way to Teach It By Sam Holland

This week, we also had some other Epic Exclusives!

The Circular Nature of Skills Policy: A Groundhog Day Experience By Anne Nicholls

From Curriculum to Capability: How Apprenticeships Must Evolve to Solve the Skills Crisis By Mike Greene, Entrepreneur, Leadership Mentor, and Philanthropist

Institutes of Technology: Empowering Learners, Powering the UK Economy By Prof Rosa Wells, Professor of Technical Education, University College Birmingham, and Chair, The National Network of Institutes of Technology

Skills Strategy: Three Crucial Balances Need to Be Struck By Dame Ann Limb, CBE DL, Chair of the Lifelong Education Institute

Why Investing in Children Today, Secures Britain’s Future By Dr Jamie O’Halloran, Senior research fellow, The Institute For Public Policy Research (IPPR)

What’s New in the World of FE?

Announcements

Apprenticeship Budget Exceeds £3 Billion, Level 7 Apprenticeship Funding Restrictions Finally Announced By the Department for Education (DfE)

£470m School and Sixth Form Repairs Boost Excludes Colleges By the Department for Education (DfE)

Surveys

1 in 10 Graduates Changing Careers due to the Threat of AI By Prospects at Jisc

Voices

Apprenticeship Age Limit: Why 21 Simply Isn’t Enough for High-Level Skills By Kim Newman, CDI’s Technical Education Programme Manager

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We hope you enjoy FE Soundbite this week. Stay curious, keep innovating, and let’s shake up the world of FE together – catch you next week!

By Danny O’Meara, Digital Project Manager, FE News

By Gavin O’Meara, CEO and Founder, FE News and FE Careers