Picture the scene: You’ve been in your current role for a number of years, and you crave the opportunity to update your existing skillset to better meet the modern demands of your work.

Taking a break to retrain isn’t a viable option – whether due to programme duration, admissions and eligibility requirements, or the costs involved. As your skillset stagnates, there are other, better or more recently qualified workers entering the workforce, making your own continued employability precarious.

Or, perhaps you’re an employer, all too aware of how evolutions in your sector are necessitating an evolution of your staff’s capabilities in order to remain competitive but cannot provide the means.

Many are facing this reality, and as a result, a significant skills gap currently exists in the UK. According to Grant Thornton UK, as much as 20% of the UK workforce could be under-skilled for their jobs by 2030, hindering business capability, productivity, and profit.

Other surveys report similarly sobering projections. The Open University’s Business Barometer report, conducted with the British Chamber of Commerce, finds that 62% of UK organisations are currently facing the realities of skills shortages.

In circumstances like these, the Apprenticeship Levy scheme offers a way forward.

Launched by the UK Government in April 2017, the Apprenticeship Levy is a tax paid by employers whose pay bill comes in at over £3 million each year. By paying a 0.5% tax on their payroll, employers contribute to a government fund that supports the development of and access to high-quality educational programmes and professional opportunities across the country.

Those same employers can access those funds to support staff in their pursuit of professional development, as well as receiving guidance on finding the best training and training providers. And here is where mid-career professionals and employers alike can find significant opportunity.

And yet, according to David Brown, Director of Executive Education at Imperial College Business School, despite the advantages the Levy offers, it is still being underutilised by much of the UK industry. Why?

“There are a couple of problems,” he notes. “The first and most profound is getting businesses to understand the value of this opportunity. Additionally, many leaders fail to prioritise training and developing essential skills, instead favouring immediate results. This lack of long-term investment often leads to gaps in skills and performance within firms.”

He’s right to speak out. The Open University’s report also found that as many as 63% of organisations do not have specific recruitment, retention, or training initiatives in place.

In response to this, a number of forward-thinking business schools in the UK have been active in developing a range of levy-supported Executive Education programmes, providing an all-too-rare opportunity for professional development.

Business schools are a natural home for developing high quality Apprenticeship Levy funded programmes, being responsible for developing the mindsets and capabilities of the next generation of business leaders. Whilst MBAs and specialised Masters exist as the flagship offerings, in recent years there has been a growing demand for Executive Education.

These shorter, flexibly-designed and often sector-specific-focused programmes allow learners to get to grips with the latest industry needs and challenges without taking a career break, building their knowledge and their networks alongside their career prospects.

But a hurdle exists here too for some when it comes to affordability. By building programmes that fit Levy’s requirements, business schools can share their expertise with a wider network of professionals and take an active role in supporting the UK industry.

For Durham University Business School, industry support has formed a core element of their own Levy-funded programmes, providing such educational support is the opportunity to actively aid levelling up in the North East.

“Durham launched the Senior Leader Apprenticeship (SLA) in 2022 in response to increasing interest from regional employers,” says Sue Boyd, Head of Executive Education at the School. Built in consultation with local employers, the programme has become wildly popular.

“Given the current economic environment, training budgets have reduced, and this has had an impact on the development opportunities for people at all levels across their organisations. The SLA ensures that those in the more senior roles can continue their development without needing to request significant budget to support this,” she says.

In marking National Apprenticeship Week, we sat down with both David and with Sue to find out more about how business schools can better leverage their expertise to support professional development and aid industry, and how the Apprenticeship Levy can be put to better use.

David Brown – Director of Executive Education, Imperial College Business School

Why has Imperial made programmes accessible via the Levy? What is the benefit?

Our Apprenticeship Levy programmes are an important part of our strategy: to make our leading research and teaching more accessible to a wider audience and to create a positive impact on society.

Multiple reports have identified significant skills gaps in the UK, especially around leadership, data and digital transformation. Our apprenticeship programmes are designed to equip people with the knowledge, skills and behaviours they need to move ahead in their careers and address capability gaps within companies.

What programmes are accessible via the Levy?

We focus on programmes where we have distinct capabilities as a STEMB university and where companies tell us there is a need for addressing a skills gap, in areas such as leadership, management, healthcare, data science, HR, and AI.

With our partner Corndel, we are looking to do something slightly different from other providers: create exceptionally well-designed programmes, make available leading content, and support the learner to not only complete the course but, more importantly, apply the learning.

And lastly, being a fantastic partner to the firms to help them communicate the value of the programmes to future learners as well as being a partner to the HR areas and business units.

What is the eligibility for applicants?

There are three considerations. First, learners must meet certain regulatory requirements around the right to work in the UK, proof of employment by the sponsoring company, and proficiency in English and maths.

Second, companies need the right people at the right time in their career: people who have a commitment to learning and managers who will give them the time to study.

Third, applicants should have a genuine commitment to the specific apprenticeship programme they want to enrol on.

What has the uptake been like? Is it a popular route?

We have been more successful than we ever imagined. In April 2024, we had over 1,700 learners enrolled on our leadership courses and 1,300+ on data. We hold an industry-leading position in terms of completion and graduation rates.

With Corndel, despite entering a very established market with well-capitalised competitors, we have achieved market leadership in the flagship leadership programmes and the fastest growth rates around data programmes.

What difference has the Levy made for learners?

The Levy can transform the prospects of individuals who may not have had access to traditional educational routes or opportunities.

At a recent on-campus learning event, one attendee’s story captured the essence of the opportunities offered by the Levy. This individual started as a part-time postman at 16 and now oversees a major sorting office with over 500 employees. Without obtaining any qualifications after leaving secondary school, they never expected to find themselves in a top academic institution, learning from world-leading faculty as part of a training programme funded by their organisation.

Our work with Levy is some of the most meaningful and important educational work we do and meets the needs of a wide range of participants from various backgrounds.

And for employers? What has their response been?

Outrageously positive! We’ve had excellent feedback from employers and from staff within our own organisation who have enrolled in our apprenticeship programmes.

We know that too many learning initiatives do not result in sustainable and applicable increases in knowledge or changes in attitude and behaviour. Through our partnerships with Corndel and our Levy sponsors, we seem to have cracked that.

Do you think the Levy is being used to its full potential by industry? If not, why not? What are employers missing out on?

It is true that for some companies, the existing apprenticeship standards are either too onerous or not suitable. However, with the introduction of the new Growth and Skills Levy, one of the key proposed changes is increased flexibility in how levy funds can be used. This should help tackle some of these issues and allow businesses to access a broader range of training programmes, including shorter courses.

Sue Boyd: Head of Executive Education, Durham University Business School

Why has Durham made programmes accessible via the Levy? What is the benefit?

Our Business School more generally, and our executive education provision more specifically, has put issues of equality, diversity and inclusion (EDI) at the forefront of how we operate. We have been awarded silver Athena Swan accreditation Charter. The apprenticeship provides an opportunity to individuals who might not previously have considered nor had the opportunity to undertake Higher Education.

The SLA is a rigorous programme that challenges the assumptions and business practices of our apprentices. The modules draw on the latest management knowledge, often generated by research undertaken by our own academics. Durham’s apprentices acquire leading edge knowledge relevant to their own needs, experience an outstanding learning environment, and earn a recognised career-advancing qualification.

What has the uptake been like? Is it a popular route?

The uptake has been fantastic. Enrolment has increased over successive cohorts, and we are seeing repeat business from some key local employers such as Sage, Hargreaves and Cummins, as well as enrolment from across the country.

Those who complete the apprenticeship also gain a Postgraduate Certificate in Senior Leadership Development from Durham University, and have the option to transfer to the Online MBA to continue their studies. There is an additional fee for the top-up element.

What difference has the Levy made for learners?

Given the current economic environment, training budgets have reduced and this has had an impact on the development opportunities for people at all levels across their organisations. The SLA ensures that those in the more senior roles can continue their development without needing to request significant budget to support this.

Apprentices enjoy learning new skills on the programme and benefitting from extensive support from academics, academic mentors and the Business School apprenticeship learning and teaching team in addition to centralised Durham University services.

And for employers? What has their response been?

Employers are very positive about the apprenticeship route for their senior leaders and those moving up into senior leadership positions. A number of key employers provided strategic direction on the curriculum and programme design based on local and regional skills priorities, and this has ensured that the programme provides an attractive proposition.

We work closely with employers throughout the programme to ensure that the apprenticeship is working well for both the apprentice and the organisation.

Employers use the apprenticeship (along with other training and development) as a recruitment and retention tool.

For additional insights, trends and perspectives about Business Education, visit the conversation here.