CMI welcomes new funding plans for apprenticeships
The Chartered Management Institute (CMI) has welcomed additional guidance published today [12 August] by the Department for Education on the funding of apprenticeships after the introduction of next April’s Apprenticeship Levy.
Commenting, Petra Wilton, CMI’s director of strategy, said:
“Apprenticeships are a proven route for raising business productivity. Leading employers are already adopting the new professional pathways such as the Chartered Manager Degree Apprenticeship, The generous levels of government co-investment announced today are welcomed by many employers, especially small businesses which now have a great incentive to take on apprentices.”
“I strongly encourage employers to get involved and ensure that this extensive new offer fully meets their needs. As it can provide the much needed injection of confidence and certainty in the skills agenda, which is needed now more than ever.”
The latest update from the Department for Education provides clarity to employers on how to secure the very best value from the forthcoming levy. £2.5 billion of funding will be used to support people of all ages to gain high-quality skills and experience and help employers to offer more training opportunities and build a skilled workforce.
Under the plans for the Levy, the government has proposed that employers that are too small to pay the levy – around 98% of employers in England – will have 90% of the costs of training paid for by the government, reassuring millions of small businesses.
Extra support - worth £2,000 per trainee – will also be available for employers and training providers that take on 16-to 18-year-old apprentices or young care leavers. Employers with fewer than 50 employees will also have 100% of training costs paid for by government if they take on these apprentices. This will help to ensure every young person, regardless of background or ability, has the chance to make their first step into work.
“These new trailblazer apprenticeships will help investment in home-grown talent; with additional support for 16-18 year-olds and the degree apprenticeships providing a new route to developing higher level, professional skills. Already we are seeing leading employers adopt the new Chartered Manager Degree Apprenticeship and invest in professional management progression pathways from Level 3 through to degrees.
“I strongly encourage employers to get involved in this consultation and ensure that this extensive new offer fully meets their needs. As it can provide the much needed injection of confidence and certainty in the skills agenda, which is needed now more than ever.
“The time to act is now, employers must not stall decisions to invest in their staff. The current funding regime for trailblazers is very attractive with plenty of money in the pot up for grabs. Apprenticeships are a highly cost effective route for workforce training, but will require new relationships and a fresh approach.”
The latest update from the Department for Education follows the shift of the policy from the Department of Business, Innovation and Skills which was charged by the previous Chancellor to implement the levy originally outlined in the March 2015 Budget. The Levy encourages employers to offer apprenticeships, and addresses the challenge that 71% of businesses admit that they fail to effective train first-time managers.
In June, the Department of Business, Innovation and Skills (BIS) gave the go-ahead for the new Level 3 and Level 5 management apprenticeships, which cover professional qualifications aimed at new team leader and operations manager roles. These apprenticeships are now live and ready for employers to incorporate as part of their management development programmes.
The schemes were developed by a group of 30 employers led by Serco and Civil Service Learning, and supported by the Chartered Management Institute (CMI). They add to the Chartered Manager Degree Apprenticeship, which was launched in November 2015, providing a progression route for employers to invest in managers at all levels.
For more information, including details of the education providers ready to deliver the programme, visit: www.managers.org.uk/apprenticeships or @cmi_managers #MgtApprenticeships
Notes to editors
The proposals outlined today include plans to:
- Support all employers to offer high-quality apprenticeships: employers which are too small to contribute to the apprenticeship levy would have 90 per cent of the cost of apprenticeship training paid - ensuring employers of all sizes can develop the next generation of skilled workers.
- Provide extra funding for young apprentices and care leavers: the government will pay an additional £2,000 to help 16-to 18-year-olds, young care leavers and young people with an Education and Health Care (EHC) plan, make their first step into the world of work – with £1,000 going to employers and an additional £1,000 to training providers. Furthermore, employers with fewer than 50 employees will not have to pay anything towards the cost of training a 16-to 18–year-old apprentice, young care leaver or young person with an EHC plan.
- Offer more flexibility for employers to re-train individuals: employers will be able to use levy funds to re-train workers in new skills, even if they have prior qualifications – giving them the freedom to make the training decisions that are right for them so they can train any individual to start an apprenticeship, as long as it is significantly different from their previous qualifications.
- Support employers taking on more apprentices: Levy paying employers – those with a pay bill of over £3 million that want to spend more on training than is in their digital account - will benefit from government support with 90 per cent of their additional apprenticeship training costs being funded, so they can continue to recruit and retrain highly skilled employees.
- Give employers more control and access to better quality training: employers will have the power to determine exactly what training their apprentices receive and what provider they receive it from. A new register of training providers, also outlined today, will be introduced from April 2017 to improve the link between training providers and employers to will help employers identify a high quality provider so they can deliver the skills they need to grow.
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