According to new research from New Economy, introducing a loans system for further education colleges will result in an 18% drop in adults in training in Greater Manchester.
From the academic year 2013-14, all adults aged over 24 who are studying courses at level 3 and above must fund the cost of learning themselves, usually through a loan.
The report supports the government’s decision announced in December 2013 to exempt apprenticeships from the system of further education loans.
James Farr, director of skills and employment at New Economy, said: “This research confirms that the growth of apprenticeships among adults over 24 would have been reversed had government not decided to exempt apprentices from Further Education loans. But it also carries warnings if the government decides to extend the system of loans to other target groups in the future – to older learners at level 2, for example. The clear implication is that the loans policy will lower investment in skills and harm employment prospects in years to come.”
Click here to read the full report.
