There has been a 57% uplift in degree apprenticeships for accounting and finance in just two years despite an estimated £214m in cuts to government funding from January, which increased training costs for employers.

The research by the University Vocational Awards Council (UVAC), the higher and degree apprenticeship voice for over 80 universities, showed that accountancy and finance apprenticeships were fourth most popular subject with demand up 57%, only outperformed by marketing, construction and law. The latest figures come just months after levy funding was withdrawn for most Level 7 apprentices aged over 21, leaving finance and accountancy firms with a skills shortage headache.

In a further boost to firms, 69% of the UK’s top 100 universities will continue to offer Level 7 apprenticeships in September despite the funding shortfall.

In the financial sector, all degree apprenticeships available at leading universities this autumn will be available at Level 6. Meantime, finance and accounting apprenticeships ranked 4th overall in terms of provision, only behind marketing, construction and architecture, and law in the top three spots.

However, this still leaves students aged 22 and older unfunded for Level 7 apprenticeships after the government shifted the emphasis to less academic, vocational programmes, leaving many accountancy firms facing funding shortfalls for their apprentice training and concerns about diversity and opportunity across the sector.

Dr Mandy Crawford-Lee, chief executive of UVAC, said: ‘Although these findings provide no comfort to both the thousands of finance and accountancy firms or apprentices aged 22 and older who were greatly impacted by the Level 7 government funding cuts earlier this year, it’s clear from our research that the UK’s top universities continue to back degree apprenticeships in large numbers.

‘What’s particularly encouraging is that universities aren’t simply maintaining provision, they’re evolving it. Degree apprenticeship growth in sector areas such as finance and accounting demonstrates their commitment to helping tackle where the UK’s biggest workforce challenges exist, and where higher level skills can have the greatest economic impact.’

Since the apprenticeship levy was introduced in 2017, over 40,000 people have applied to study accountancy or taxation, demonstrating the popularity of funded training routes. 

Vipul Sheth, managing director of AdvanceTrack said: ‘Prior to the introduction of Level 7 courses, people would be expected to spend tens of thousands of pounds at university, with no guarantee of a job at the end.

‘Naturally, this narrowed the pool of candidates qualifying, but since the apprenticeship levy was introduced, there’s been a massive uptick in individuals qualifying from poorer backgrounds.’

Although the changes to the qualifying age for funding were a blow, growth in the overall number of courses available does show strong demand. In addition the new prime minister Andy Burnham has endorsed apprenticeships, with talk of more localised provision and the importance of promoting programmes in schools.

Apprenticeships: top five growth sectors 2024-26

1.          Marketing: +150%

2.          Construction and architecture: +95%

3.          Law: +67%

4.          Finance and accounting: +57%

5.          Health and science: +54% 

Source: UVAC

Dr Crawford-Lee added: ‘Demand for finance-led degree apprenticeships among young people has never been higher. Our focus is now on helping universities ensure their provision across more regions, sectors and apprentices from underserved communities so that social mobility is not compromised.’

UVAC has a membership of over 100, including universities, higher education institutions, awarding bodies, service providers and individuals. The Top 100 is based on The Times Best Universities in the UK ranking.