Apprenticeship funding boosted, with strings attached

The Government has announced that increased funding for the apprenticeship programme will be accompanied by measures to reduce funding for older apprentices and to withhold funds from employers to boost completion rates.

The Learning and Skills Council (LSC) has announced an inflation-related increase (worth 2.5%) to apprenticeship rates, together with an increase in the scheme's budget to £1,137m for 2005/06. This compares to £1,105m for the period 2004/05. The new budget is intended to fund an additional 3,000 apprenticeships in the coming year.

But the LSC will withhold 25% of the National Vocational Qualification funding in 2005-6. It will only be paid when young people complete their their full training programme. Elsewhere, funding rates for appentices aged over 19 will be reduced by 6%, with providers expected to recoup the shortfall from employers.

EEF, the manufacturers' organisation, has criticised the reduced funding for older apprentices. An EEF spokeswoman stated that 'this decision flies in the face of all logic at a time when we should be trying to enhance our skill base. All the evidence points to lack of intermediate skills being a serious drag on efforts to improve our productivity and a reduction in funding for older apprentices will do nothing to help industry improve its skill base'.

  • More cash for apprenticeships   Personneltoday.com reports.

  • Increased cash and focus on key priorities for Apprenticeships   Read the press release, as published on the Learning and Skills Council website.

  • Manufacturers attack reduction in funding for older apprenticeships   EEF, the manufacturers' organisation, has published its official reaction on its website.

    Also

    Employer involvement central to Government's skills vision The latest White Paper on skills has affirmed the Government's belief that employer involvement in Learning and Sector Skills Councils is essential to the success of vocational training. XpertHR reports.

    Taking skills to the next level The Learning and Skills Council can help boost UK productivity by closing the skills gap, writes its chief executive Mark Haysom.

    Labour's third term agenda   XpertHR's analysis of the employment agenda for Labour's third term outlines its manifesto commitments on skills.These include an increase in the number of apprenticeships by 50,000, to 300,000, and the launch of new 'creative apprenticeships' to focus on areas such as computer graphic design and post-production work.