Neville Prior 18 August 2016 11:39:01 AM
Extra support - worth £2,000 per trainee - will also be available for employers and training providers that take on 16 to 18-year-old apprentices or young care leavers The government’s new funding model for the planned apprenticeship levy would see the vast majority of employers having 90% of training costs paid for by the government. Under the plans employers that are too small to pay the levy - around 98% of employers in England - will have the bulk of the costs provided. Extra support - worth £2,000 per trainee - will also be available for employers and training providers that take on 16- to 18-year-old apprentices or young care leavers. Employers with fewer than 50 employees will also have 100% of training costs paid for by government if they take on these apprentices. In all, £2.5bn will be invested in apprenticeship training by 2020.
Apprenticeships and skills minister Robert Halfon said: “We need to make sure people of all ages and backgrounds have a chance to get on in life. Apprenticeships give young people - especially those from disadvantaged backgrounds - a ladder of opportunity. That’s why we continue to work tirelessly to deliver the skills our country needs. The apprenticeship levy is absolutely crucial to this."
“Our businesses can only grow and compete on the world stage if they have the right people, with the right skills. The apprenticeship levy will help create millions of opportunities for individuals and employers. This will give our young people the chance they deserve in life and to build a highly-skilled future workforce that the UK needs.”
A new register of training providers will be introduced from April 2017 to improve the link between training providers and employers to will help employers identify a high-quality provider so they can deliver the skills they need to grow. All employers and training providers now have the chance to feedback on the proposals for apprenticeship funding
by 5 September. Final funding proposals will be confirmed in October 2016.
In response, the Federation of Small Businesses chairman Mike Cherry, said:
“This announcement sends a clear signal that ministers are listening to our members’ concerns. “Smaller businesses are taking on more apprentices than ever before. What’s more, a quarter of our members say they are considering employing an apprentice in the future, but only if they feel apprenticeships are affordable."
“While many small firms are committed to apprenticeships, many more continue to be worried about the time and personal commitment required. Getting apprenticeship reform right, including changes to existing funding arrangements, is key to apprenticeship growth among small businesses and the government achieving its target of three million new apprenticeships over the course of this Parliament.”