Year: 2017
Type: report
Abstract: Reforms to Apprenticeship Funding in England Shift from "Train to Gain" to Apprenticeships Details of new apprenticeship levy and funding system From April 2017, employers will pay new apprenticeship levy of 0.5% on paybill in excess of £3million • Expected to raise £2.8bn by 2019-20 • Will affect 2% of employers, but they employ at least 60% of employees New system of apprenticeship funding in England • Subsidies for off-the-job training costs • Devolved administrations responsible for their own arrangements Link between levy payments and level of public subsidy is very weak • Only determines if employers receive 90% or 100% subsidy • Price caps are far more important for determining public subsidy © Institute for Fiscal Studies Reforms to Apprenticeship Funding in England How does it compare with current system?Government already plans to spend £1.8bn on apprenticeships in England in 2016-17 • Subsidies vary by age: 16-18 (100%); 19-23 (50%); 24+ (c.40%)By 2019-20, total apprenticeship budget expected to be £2.5bn• Public spending only increases by £640m • Around ¾ of new levy is just a tax rise • Subsidies of 90/100% implies biggest rise for apprentices age 19+ Apprenticeship starts need to increase by at least 20% to meet target • In long-run, would imply about 90% of individuals would be doing an apprenticeship at some point in their lifetime © Institute for Fiscal Studies Reforms to Apprenticeship Funding in England © Institute for Fiscal Studies Reforms to Apprenticeship Funding in England Do these claims stack up?There is a skills problem amongst UK workers Employers have weak incentive to invest in training There has been a collapse in workplace training There are huge returns to public investment in apprenticeships © Institute for Fiscal Studies Reforms to Apprenticeship Funding in England Government argues there has been an 80% decline in training since late 1990s
Author: Luke Sibieta
Language: English
Topic: Education Systems and Policy
Subfield: Education
Field: Social Sciences
Domain: Social Sciences
Open Access status: gold
OpenAlex ID: W2592615515