Employers to contribute towards staff training

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On 6 March 2014 the Government published a document, Funding Reform Technical Consultation.  This document followed the original consultation on apprenticeship funding published in 2013 and sets out proposals on the funding principles and funding route in line with the Skills Funding Statement issued earlier in 2014.

Amongst other things, it will mean you now have to make a significant financial contribution towards training staff at your setting. At present, you are supposed to match the government contributions towards childcare qualifications, but most training providers waive that fee and take the hit themselves. This will all change if funding comes directly to employers.

We have compiled a brief summary of the main principles that the document discusses, and have put together a few questions of our own, independent of the government survey mentioned, as we would like to know how this will affect your business.

Key take outs:

Apprenticeships are a joint investment between the apprentice, the employer and the government. It is therefore right that the cost is shared between these three parties.

Doug Richard, founder of School for Startups, identified the following key principles that should underpin any future approach to funding Apprenticeships, and the funding methodology in this Section is designed to deliver and encourage these:

  • The employer is the customer. Training providers should receive their funding from employers not a public agency. Positioning the employer as the customer would increase providers’ incentives to respond to business needs
  • The employer should be required to co-invest. By making a significant direct financial contribution towards the cost of training, employers would have a greater incentive to demand relevant high-quality training and good value
  • The government should not set the price of training or assessment. This should be freed from public control and set by the market between employers and providers, with government paying a proportion of this. This would help prioritise the learning that delivers the most value
  • A proportion of the government funding should be linked to achievement. Payment should be partially linked to the achievement of the standard, providing an incentive to support individuals to achieve
  • Government funding should recognise the additional costs for the smallest employers and relating to younger apprentices to ensure all employers and apprentices of all ages can benefit from Apprenticeships.

Employers are encouraged to read the full consultation document, which you can find here, and respond to a short questionnaire put together by the government.

So how will this affect your business? Do you have the time and money to deal with the training process? Let us know here. (This is independent of the government survey above)

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3 thoughts on “Employers to contribute towards staff training

  • May 6, 2014 at 4:16 pm
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    childcare sucks,
    bringing up a nation of softly softly politically correct spoilt brats because of a bunch of bum covering hypocritical bureaucrats like ofsted and local authority.
    parents should try look after children in early years at home nurseries are no good for them, the bond with a parent is developed in the early years

    Reply
  • April 23, 2014 at 9:57 pm
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    Appreciate your internet site and the extremely compelling article.
    Continue the great work!

    Reply
  • April 22, 2014 at 12:41 pm
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    It is fine to expect the employer to make some contribution towards the cost of training apprentices however the industry we work is is quite unique and I believe is saturated to a great extent with young people who leave school without any qualifications and subsequently drift or are coersed into child care almost as a last resort. The employment agencies encourage young people into childcare roles to improve the unemployent figures however many are ill suited and have no passion for this work and as a result many of the candidates decide part way through an apprenticeship that its not for them and leave. The employer then has to recruit and fund another candidate, and on it goes. If Employers are forced to increase the amount of contribution to funding my belief is that we will see a reduction in the number of apprentices being given opportunites especially at small settings and employers like myself will offer roles to those who are already qualified and working in the market as the increased salary paid will ultimately balance out the cost of wasted time and money. If we are expected to do our bit to help move the job market and enable our young people to gain a worthwhile career then we need more help from the government to do so and not more obsticles.

    Reply

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