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Government Launches New Consultation on Apprenticeship Funding

The Government has published a consultation document regarding proposed changes to apprenticeship funding.
Government Launches New Consultation on Apprenticeship Funding

Table outlining the three proposed funding models

The consultation will run until 1st October 2013 and is currently seeking respondents’ views regarding the three potential new methods for drawing funding which are included in the proposal. These are:

  1. A new online system for apprenticeships, with payments to employers made directly from the system
  2. Utilising the PAYE system, allowing employers to be reimbursed through their taxes
  3. Reforming the existing provider funding infrastructure, whereby providers continue to draw funding from Government, but ensuring that this only occurs after the employer contribution.

Today’s proposed changes broadly follow the recommendations established in the Richard Review of Apprenticeships, which was carried out by the former Dragon’s Den star, Doug Richard, and published back in November. Although the Government formally responded to the Richard Review in March (see here), they omitted what was arguably Mr Richard’s most controversial reform (changes to apprenticeship funding), stating that more time was needed to consider his proposals.

All three options outlined in the report aim to increase the role played by the employer in funding apprenticeships. It is hoped that doing so will boost employer ownership of apprenticeships and consequently increase availability and take-up. Commenting on these proposals, Business Secretary Vince Cable said, “Employers are the best people to judge what training is worth investing in. These radical reforms will mean just that”.

To view or download a copy of the consultation document and have your say on apprenticeship funding, click here.

Jul 24, 2013 02:27 PM