DHSC Has Agreed Mitigation Funding, For Level 7 Apprenticeships In Five Health Professions

The Department of Health & Social Care has agreed funding, over three financial years, to support
Level 7 Apprenticeships in 5 health professions. These are:

• Advanced Clinical Practitioner
• Specialist Community Public Health Nurse
• District Nurse (Community Specialist Practice Qualification)
• Clinical Associate in Psychology (CAP)
• Health & Care Intelligence Specialist (PHIS)

Ring-fenced ‘Mitigation Funding’ from The Department of Health & Social Care

The new ring-fenced ‘Mitigation funding’ initiative from the DHSC (which is c£20M and is funded by the DHSC, not from the Levy or DfE) represents a targeted response to workforce challenges across critical healthcare roles, with the largest allocation supporting Advanced Clinical Practitioners who accounted for 1,146 indicative starts in 2023/24, according to Department for Education data. Across all five professions, there were 1,574 apprenticeship starts, demonstrating the significant scale of potential impact from the DfE Level 7 policy change.

The fund supports employers with the costs associated with Level 7 apprenticeship education,
previously covered by the Apprenticeship Levy. Back in May 2025, DfE and Education Secretary, Bridget Phillipson announced a Levy funding policy shift of funding away from Level 7 from January 2026. So that funding via the Levy will no longer be funding Level 7 (Masters Level) Apprenticeships from January 2026, while maintaining support for those aged 16-21 and existing apprentices. The DfE rationale being that this will enable Levy funding to be rebalanced towards training at lower levels, where it can have the greatest impact.  So this is likely why this ring-fenced fund is outside of the Apprenticeship Levy funding, and this NHS initiative is called a “mitigation funding” measure.

NHS ‘Mitigation Funding’ To The Rescue for Level 7 for Three Years and Five NHS Professions

The new ring-fenced ‘Mitigation funding’ initiative from the NHS represents a targeted response to workforce challenges across critical healthcare roles. The funding is ring-fenced specifically for Apprenticeship education programme costs payable to universities, typically divided across the programme duration. For example, a Level 7 Advanced Clinical Practitioner apprenticeship costing £12,000 over three years would receive £4,000 annually.

Eligibility extends to apprentices aged 22 and over who are not care-experienced under 25 or receiving Education Health & Care Plans. Approved universities must deliver the programmes to qualifying employers including NHS trusts, integrated care boards, and primary care organisations.

Strategic Healthcare Workforce Planning

NHS England has positioned this funding within broader workforce development goals, emphasising social mobility and widening access to create healthcare workforces that reflect all communities. The initiative particularly prioritises working class, rural, remote and coastal areas, aligning with neighbourhood health models and prevention strategies outlined in the NHS 10 Year Health Plan.

Eligible employers include NHS trusts, integrated care boards, primary care organisations, and independent providers of NHS-commissioned services. To qualify, employers must demonstrate commitment to local clinical expansion plans and ensure sufficient placement capacity. These requirements link apprenticeship funding directly to service delivery needs and capacity building in underserved areas.

Sector Reaction To The NHS Mitigation Funding Of Level 7 Apprenticeships In Health and Social Care

Vivienne Stern, Chief Executive of Universities UK, said:

“This is a great decision. Universities and the NHS have worked closely together to develop essential level 7 apprenticeships which are extremely valuable to the NHS, and play a significant role in training nurses and other healthcare professionals. 

“The continuation of funding for these qualifications is necessary to make sure the Health Service has the trained staff it needs to deliver excellent patient care.

“We continue to believe that there are other level 7 apprenticeships that should be eligible for funding through the Skills and Growth Levy, because they meet the needs of employers in the public services and beyond,  and will press this point with Government.”