IMI Criticises New Apprentice Funding Arrangements

PARN Global News Article - 5 September 2016

IMI Criticises New Apprentice Funding Arrangements

IMI Criticises New Apprentice Funding Arrangements

The Government has announced new funding arrangements for apprenticeships in connection with introduction of the Training Levy in 2017. 

Many of the courses currently used by the motor industry to fill around 13,000 apprentice vacancies every year are subject to cuts of up to 50% in Government funding. This has sparked fears that retail motor sector will suffer a trainee drought from next year, worsening an already critical skills shortage across the country.

IMI believe the Government’s plans are designed to push their “Trailblazer” or “Employer Standards” Apprenticeships.  These courses attract 3 times the funding under the new arrangements than most current training schemes: £18,000 for a level 3 compared to £6,000 the three-year courses available now.

However, with just one exception, none of the new schemes for the motor industry have been completed. Most won’t be fit for purpose for some time.  In the meantime, some the existing courses will become economically unviable for colleges to provide leaving employers and learners in difficulty.

Steve Nash, IMI CEO, commented: “These proposed funding levels will leave some vital apprenticeships with up to 50% less funding.  Employers around the country will struggle to get training places for their apprentices under this system. It begs the question, how can this possibly support the Government’s aim to create more apprenticeships?"
See the IMI website for more details