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Cuts to apprenticeship funding rates of up to 50% proposed

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By: Michael Lemin

Policy and Research Manager

Thursday 25 August 2016

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It has been revealed that proposed funding for 16-18 year-old apprentices will mean current rates to colleges and training providers being cut by around 30%, and providers in deprived areas of London will find that their funding rates may have been cut by over half in some cases.

In my opinion, this is likely to cause further damage to the apprenticeship brand in London, which we know is a problem. Our recent research with Reed in Partnership found that people in the capital are 40% less likely than the English average to want their children to pursue an apprenticeship.

We also know from experience that employers seldom want to employ young people, particularly those under 18. The government must consider that, in an effort to simplify funding to encourage more employers to offer apprenticeships, they may be unfairly disadvantaging young learners, who already suffer from reduced wages based on their age.

Regional uplifts and age-related payments have evolved in the system for a reason. We’d all like a simplified funding system that is easy to navigate and understand, but first and foremost the system must be fair and promote opportunity and social mobility for all.

We must remember that there is an element of risk in reforming the system, and those who stand to lose the most are learners. The focus on engaging employers often feels at the expense of learners, and this is a stark example of an imbalanced reflection of stakeholder needs.

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