Policy Submissions

S981 - The future of apprenticeships in England (funding reform technical consultation)


Apprenticeship funding reform – IET comments to the Dept for Business Innovation & Skills, and the Dept for Education.


This consultation outlines two models by which employers can manage apprenticeship funding, both of which are routed through Her Majesty’s Revenue and Customs (HMRC). The first proposes to use the PAYE system and the second suggests an online apprenticeship gateway.

The HMRC models that have been put forward to support the changes to apprenticeship funding methods should take into account a variety of factors; including the potential impact on the cash flow of small companies and the business model of providers.

There are ways in which these effects can be mitigated in both models, for example the use of a contractual pay back system instead of retaining some of the funds would reduce the issues surrounding cash-flow, which affects small businesses in particular. Also, ensuring that there is longevity to the upcoming changes will allow industry to plan ahead with confidence.

Submission Details Submitted on 01 May 2014 to Dept for Business Innovation & Skills, and the Dept for Education

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Keywords and Search Terms Apprenticeships, funding, reform, education, employers