Apprenticeships could be damaged by changes

Chris Jones discusses the possible impact of Government changes to apprenticeship funding

30 April 2014 / Jump to comment (1)

The Government has been a big supporter of apprenticeships over the past few years, which is great for young people, business and the economy.

George Osborne announced £170 million of extra funding for apprenticeships last month as part of the Budget, and it's not hard to see why. Apprentices help fill the needs of business and, in return, receive the real-world and workplace experience that employers want. In fact, City & Guilds Group research shows that 77 per cent of employers think that young people with work experience are more employable.

The extra funding is very welcome, but unfortunately it comes with changes to the system that are not welcome.

The Government wants to put employers in the driving seat and give them more influence in developing the training that their apprentices receive. This is a sentiment we fully support. However, one of their mechanisms for achieving this is having businesses front the initial costs, and then claim it back through taxes.

Instead of forcing everyone to adopt one funding model, why not give employers the option? That way, they could choose which path is best to meet their business needs.

Read the full article in the Huffington Post.

Comments 1 Comment


08 July 2014

I feel that SME's will lose out, most of them have no knowledge of how to manage this, plus using PAYE system to offset funding will not work for small businesses because of cash-flow issues.

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