AELP warns that reforms will put off apprentice employers

The Association of Employment and Learning Providers has said that the government’s latest proposals for funding apprenticeships will prevent young people finding jobs and small businesses from offering apprenticeships.

The government has chosen to ignore the weight of employer responses against the funding proposals. Only 33% of large employers want an employer direct payment model, whereas smaller businesses want to retain the current provider funded model.

AELP chief executive Stewart Segal said: “The government needs to think again about the barriers SMEs will face in managing the funding and making a cash contribution up front.  It also needs to recognise that irrespective of their size, many businesses only employ one or two apprentices and would not want to manage the funding directly. 

“We are in danger of creating a system which will see a major reduction in the number of employers offering apprenticeships when the only justification for reform set out in the Technical Consultation is that we must follow Doug Richard’s principles.  This is despite the strong employer evidence against changing the funding system gathered by the government itself.”