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Apprenticeship funding to transform investment in skills

News   •   Oct 25, 2016 16:28 BST

Government sets out how funding for apprenticeships will help millions get the skills needed for a successful career.

Today (25 October 2015), the government set out how apprenticeships will be funded as part of the drive to help people get the skills they need to be equipped for a successful career, helping Britain’s skills shortage and making the apprenticeship schemes more effective.

The government wants to give everyone the opportunity to gain skills that can help them pursue a lifelong career, regardless of background or where they live, which includes giving more support for 16-18 year olds and those from disadvantaged areas.

A number of main measures were confirmed today, which focuses on more support for younger apprentices and disadvantaged people. Employers with less than 50 employees who take on apprentice’s ages 16 to 18 years old will get 100% of training costs payed by government.

This will also apply to smaller employers who take on 19- to 24-year-olds who were in care or have an education and health care plan.

The government will also provide £1,000 to employers and training providers who take on 16-24 year olds who were in the care or who have an education and health care plan.

Additionally, providers that train 16- to 18-year-olds on apprenticeship frameworks will be given an additional cash payment equal to 20% of the funding band maximum in order to help them to adapt to the new, simpler funding model.

More than £60M will be invested in supporting the training of apprentices from the poorest areas in the country, with the government conducting full reviews into how to support individuals from all backgrounds into apprenticeships in the future. This will look at the support employers should receive, as well as providers, and conclude next year.

Employers will get more flexibility, giving them longer to spend digital funds, as well as introducing the ability for employers to transfer the funds to other employers in their supply chains, sector or to apprenticeship training agencies in 2018. A new employer group will also be added, to help the government develop the system so that it works for employers.

Skills Minister Robert Halfon said: “Apprenticeships work. The reforms we are rolling out will guarantee support from employers and government, so that millions of people can get the apprenticeships, skills and jobs for the future.

“Our apprenticeship levy will boost our economic productivity, increase our skills base and give millions a leg up on the ladder of opportunity – over 90% of apprentices currently go into work or further training. Making Britain a world leader on apprenticeships is essential if we truly want a country that works for everyone.”

The government has also introduced a new register of apprenticeship training providers, where by all providers on the register I’ll have to pass quality and financial tests. Those with an “inadequate” Ofsted rating for apprenticeship provision will not be eligible to apply to the register, as part of the government’s plan to ensure higher-quality apprenticeships.

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