Plan turns off apprentices

Government plans for funding apprenticeships will cost employers more, add complications and may discourage smaller firms from taking on apprentices, warns the Derbyshire and Nottinghamshire Chamber of Commerce.

The Department for Business, Innovation and Skills has come up with three options for the funding in the second round of consultation: a direct payment model, a PAYE payment model and a provider payment model.

Ian Greenaway, president of the chamber, said: “Under these new proposals to encourage employers to get more interested they will be expected to make a contribution so the costs will increase rather than decrease. Larger companies will probably have the mechanisms in place to conduct negotiations with training providers and cover the cost of the apprenticeship up to the point where funding can be reclaimed but smaller companies, if they see it costs more and becomes more complicated, might be put off rather than encouraged.”