The government’s Emergency ‘Summer’ Budget was announced this week; the first Conservative-only budget since 1996.
The key announcement for education and skills was that the government’s target of 3 million apprenticeships by 2020 will be funded through a levy on employers. The levy will support all post-16 apprenticeships. This is likely to incentivise employers and encourage them to employ more apprentices. There are a plethora of advantages to businesses hiring apprentices and it’s good to see that employers are being encouraged to include apprenticeships in their business plans.
The government are going ahead with an ‘earn or learn’ initiative for 18-21 year olds, declaring that young people must undertake further learning or find employment upon leaving school; it’s thought that this could contribute to an uptake in apprenticeships. 18-21 year olds will no longer have automatic access to housing benefit, and the rise in the minimum wage (£7.20, rising to £9 per hour by 2020) will not apply to under-25s, raising concerns that young people are being hit hard by this budget.
The Further Education sector has braced itself for an impending 24% cut to the Adult Skills Budget (ASB), but this wasn’t explicitly outlined in the budget document. Experts have indicated that it’s likely to still happen, but any major funding reforms may be delayed until at least 18/19.
Outside of education and skills, some of the announcements that are making the headlines are;
- An extension to free childcare for working families to 30 hours a week for 3 and 4 year olds.
- A commitment to meet the NATO pledge of spending 2% of GDP on defence (protecting this budget means savings will have to be found elsewhere).
- £30 million of funding for Transport for the North.
- Ending permanent non-dom status.
- An increase of tax-free personal Allowance from £10,600 to £11,000.
- A cut to corporation tax.
At NCFE one thing we’re pleased to see that apprenticeships are still at the forefront of the government’s plans for education, and that employers are being incentivised to take on apprentices. Providing people with quality apprenticeships and skills can set them up with a fantastic career and job for life, which is a positive for not only individuals, but the economy too.
What do you think of the budget? How will you and your learners be affected?
