It’s National Apprenticeship Week, and normally we’d be celebrating the incredible opportunities apprenticeships offer to aspiring accountants and the firms that back them.
But this year, there’s a major hurdle ahead…
The potential axing of Level 7 apprenticeship funding for accountancy from 1st August 2025.
Yep, you read that right.
The game-changing Level 7 apprenticeship programme – the very one that’s been helping both young professionals and career changers qualify with ICAEW, ACCA, and CIMA – might be on the chopping block.
And if it goes, it could shut the door on an affordable route into the profession for countless aspiring accountants.
Why Should You Care?
If you’re at the start of your practice career or a firm that relies on this programme to develop talent, this is big news.
The Department for Education and Skills England are set to announce in late February 2025 that funding for many Level 7 apprenticeships will be pulled. And while apprentices already enrolled before 1st August 2025 will keep their funding, new apprentices won’t get a look in.
At first glance, this may seem like an issue only affecting entry-level talent, but the impact will be felt at all levels. Here’s just a few reasons why everyone working within practice should take note of this potential change:
- Fewer qualified accountants in the pipeline– If fewer aspiring accountants can afford to train through apprenticeships, firms will struggle to fill Semi Senior and Senior roles in the future.
- Increased pressure on existing teams– If the flow of new talent slows down, more work will fall onto the shoulders of existing accountants, leading to higher stress levels, longer hours, and greater burnout risks.
- Harder career progression– As fewer accountants qualify via the Level 7 route, firms will have fewer rising stars to step into leadership roles in the coming years, creating stagnation in career progression across the industry.
Why Has Level 7 Been a Lifeline within Public Practice?
For years, small and medium-sized accountancy firms have used the Level 7 apprenticeship to bring in and train talented professionals without breaking the bank.
For smaller firms (non-levy payers), apprentices under 21 or those aged 22-24 with an Education, Health and Care Plan (EHCP) currently qualify for free. For others, firms only pay 5% of the training cost – a small price to pay for a skilled accountant.
For larger firms (levy payers),if your firm has a payroll of over £3 million, you already pay into the apprenticeship levy, meaning this programme has been a brilliant way to invest in and grow your team using funds you’ve already contributed.
The removal of Level 7 funding could make it far more expensive (or downright impossible) for firms to afford the same level of training.
That means fewer apprentices, fewer skilled professionals, and a talent crunch for the industry. Considering confidence among accountants is at an all-time low and that the sector is still facing a skills shortage, this could wreak even more havoc.
Why Acting Now is a Smart Move
Strengthen your workforce
Many firms tell us that apprentices bring fresh energy, enthusiasm, and innovation to their teams. Investing in Level 7 talent now means securing skilled, motivated accountants who can drive your business forward.
Provide affordable training opportunities
We spoke recently about the benefits of mentorship.The Level 7 apprenticeship offers similar pros and has made it easier than ever to train accountants without the financial burden. Firms that recruit before the 1st August 2025 deadline can still take full advantage of this structured, cost-effective training path.
Open doors for more diverse talent
Not everyone can afford university tuition fees or take on significant student loan debt. Apprenticeships have long been a key driver of social mobility, giving aspiring accountants from all backgrounds an opportunity to thrive.
Stay ahead in recruitment
The demand for skilled accountants is growing, and firms that invest in apprentices now will have a competitive edge. Securing talent early ensures your firm is future proofed against skills shortages, and that’s something our teamcan help you with!
How to Make the Most of This Opportunity
If you’re an accountancy firm that was planning to bring in a Level 7 apprentice this autumn, don’t wait. You need to act now if you want to benefit from this programme before it’s gone.
- Bring your hiring plans forward: If you normally wait until after A Level results (14th August) to recruit apprentices, consider making conditional offers now. That way, you can secure your talent early and ensure they’re enrolled before the deadline.
- Fast-track progression for current apprentices: If you’ve got employees completing Level 3 or Level 4 apprenticeships, don’t delay their progression to Level 7. They need to fully complete their current programme and be enrolled before 1st August 2025 – or they could miss out entirely.
- Reassure your current apprentices: Good news. Anyone already on a Level 7 apprenticeship before August 2025 is safe. Make sure your current apprentices know that their funding is secure, so they don’t panic about their future.
- Spread the word: This isn’t just about your firm. It’s about the future of the accountancy profession. Many firms and professionals don’t realise this funding is disappearing, and by the time they do, it could be too late.
Share this article, have conversations with industry peers, and encourage firms to act now before the opportunity is lost.
Are you an accountant at the start of your practice career looking to join a forward-thinking firm?
Or maybe you’re an accountancy practice looking to secure tomorrow’s generation of accountants?
Here at Public Practice Recruitment Ltd, we specialise in helping accountancy firms secure top talent, from Semi Seniors through to the most senior positions. By securing the right talent now, you can future proof your workforce and build a team that will drive your firm forward for years to come.
Let’s work together to secure the future of accountancy and create exciting opportunities for the next generation. Talk us through your career goals or recruitment needs by getting in touch with our team today.
