Apprenticeship Funding Sees £60 Million Deprived Area Fund

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• Apprenticeship Funding Sees £60 Million Deprived Area Fund

04 November 2016 | Updated 01 January 1970

The government has set out how apprenticeships will be funded. The Rt Hon Robert Halfon MP said: "Apprenticeships give people more control over their lives and can be the difference between just about managing and pursuing a skilled, long-term career. The government wants to give everyone this opportunity, regardless of their background or where they live, which is why we are giving more support for 16 to 18-year-olds and those from disadvantaged areas.

"The funding policy will underpin the new apprenticeship levy, which will deliver much needed investment in the skills we need to change the lives of millions."

Main measures confirmed today:

• 100% of training costs will be paid by government for employers with fewer than 50 employees who take on apprentices aged 16 to 18 years old. This will also apply to smaller employers who take on 19 to 24-year-olds who were in care or 19 to 24-year-olds with an education and health care plan,

• £1,000 each from government to employers and training providers who take on 16 to 18-year-olds and 19 to 24-year-olds who were in care or who have an education and health care plan.

• 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.

Providers that train apprentices from the most deprived areas on apprenticeship frameworks will continue to receive additional funding from government. More than £60 million will be invested in supporting the training of apprentices from the poorest areas in the country, equalling around one third of all apprentices.

More flexibility for employers

• Longer for employers to spend funds in their digital account, now with 24 months before they expire, an increase from government’s original proposal of just 18 months.

• A commitment to introducing the ability for employers to transfer digital funds to other employers in their supply chains, sector or to apprenticeship training agencies in 2018, with a new employer group including the Confederation of British Industry, Federation of Small Businesses, British Chambers of Commerce, Charity Finance Group and EEF - the manufacturers’ organisation - to help government develop this system so that it works for employers.

• More funding for STEM apprenticeship frameworks and higher pricing of apprenticeship standards to support improved quality and providing greater flexibility to train those with prior qualifications. This will support the industrial strategy and provide wider opportunities for more individuals to develop new skills.

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.

“The apprenticeship levy will boost 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.”

To ensure higher-quality apprenticeships, the government has also introduced a new register of apprenticeship training providers. All providers on the register will 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.

Picture: Apprenticeship funding will be increased and made more flexible

Article written by Cathryn Ellis | Published 04 November 2016

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