UK government set to pull plug on MBA apprenticeships

A controversial MBA apprenticeship plan that allowed firms in England to ship senior executives to…

A controversial MBA apprenticeship plan that allowed firms in England to ship senior executives to organization university with cash earmarked for on-the-task schooling is established to be axed.

The go to scrap the qualification was exposed when the Institute for Apprenticeships and Technological Schooling, which administers apprenticeship benchmarks, published a revised record of apprenticeship benchmarks pursuing feed-back from companies with all reference to MBAs taken out.

The determination is anticipated to be verified in early June when the authorities is because of to publish a overview of MBA apprenticeships. 

The inclusion of MBAs as section of the government’s apprenticeship plan was widely criticised as it diverted a massive proportion of the funding away from workplace schooling. The funding for apprenticeships arrives from a levy released in 2017 that calls for companies with yearly wage costs earlier mentioned £3m to established aside an equivalent of .5 for each of their payroll.

Beneath levy procedures, companies are provided regulate above which skills can be classed as apprenticeships. Accredited strategies selection from stage-two GCSE-equivalent classes for university leavers, this kind of as schooling for shop personnel, to diploma-stage roles, this kind of as lawyers and nurses.

The MBA was bundled as a section of the stage-seven senior leader occupational typical.

Beneath the variations, companies will continue to be allowed to spend the levy on substantial-stage management schooling but it would be fewer interesting as individuals would no for a longer period obtain a masters diploma at the conclusion of the programme.

Critics argued the MBA plan was an abuse of the apprenticeship levy. In the to start with total 12 months immediately after the levy was released in April 2017, there were 375,800 new apprenticeship starts, a 26 for each cent drop on the very same time period in 2015/16.

Even so, the proportion of increased-stage apprenticeships, equivalent to bachelor’s levels and earlier mentioned, increased from 5.three for each cent to 12.eight for each cent for the duration of this time period.

A examine by FE 7 days magazine calculated that there were 6,387 starts on MBA apprenticeship programmes up to the conclusion of the to start with quarter of 2019/20. Given that each and every of these classes can obtain up to £18,000 from the apprenticeship levy pot, up to £115m experienced been used on the standard in that fiscal 12 months.

Jennifer Coupland, chief government of the institute, experienced as a short while ago as January defended the MBA programme, which she claimed stuffed abilities gaps discovered by companies.

Even so, the most recent feed-back from companies has revealed a shift in impression. “The employer team have designed a clear recommendation, which we are now consulting on,” the IfATE claimed.

The Section for Schooling claimed: “The training secretary is dedicated to preserving an employer-led process, but is not confident the levy must be applied to pay for personnel, who are often currently hugely skilled and hugely paid, to obtain an MBA.”

Organization educational institutions, which have benefited most from the advancement in bachelor’s and masters-stage diploma apprenticeships, expressed disappointment at the determination to get rid of the capability to attain an MBA as a result of levy funding.

“Better administrators is what this nation desperately requirements,” claimed Anne Kiem, chief government of the Chartered Affiliation of Organization Educational institutions, which represents the Uk sector.

“Taking the qualification out of the senior leader typical can make it pretty unattractive for most of people who have signed up for it to day.”