The reform proposals include three payment models, one of which being where businesses would register apprentices through a new online system and then recover government funding through their PAYE return. Whilst the CIPP can understand the reasons as to why the government would like to reform the funding process for apprenticeships, we strongly oppose this model (Model 2: Paye Payment). It would bring increased complexity to an already complex PAYE system, increased costs and cashflow issues.
To read a full summary of findings, the formal response can be downloaded through the link below.
CIPP response to apprenticeship funding consultation - September 2013
ICAEW response to funding reform for apprenticeships
4 October 2013
The CIPP welcome the ICAEW’s (Institute of Chartered Accountants in England & Wales) response to the consultation on funding reform for apprenticeships.
The CIPP published their response to this consultation on 23 September 2013 and opposed the Model 2 proposal for employers to recover government funding through their PAYE return. We are pleased that the ICAEW’s response is in agreement. Their key summary states: “We would have grave concerns about the amount of extra work created for HMRC, BIS, training providers and the employer population if apprenticeship funding were to be routed via HMRC’s PAYE account (Model 2). A choice of Models 1 and 3 should suit most employers and keep the system simple, minimising the risk of fraud, error and confusion.”
ICAEW’s full response can be viewed on their website through this link .
Apprenticeship reforms in England driven by Trailblazers
1 November 2013
Some of the UKs leading businesses have signed up to deliver new and improved apprenticeships.
Groups of companies, including BMW Group UK, have come together to give industry the power to lead the design of these new apprenticeships. More than 60 companies who took on more than 13,000 apprenticeship starts in 2011 to 2012 are involved in these groups, which are known as Trailblazers.
The reformed apprenticeships will be:
employer-led and designed so they respond to the needs of industry, meaning each apprentice has the skills required by the sector focused on quality so the apprentice has to demonstrate their ability through rigorous assessment at the end of their apprenticeship graded on completion – pass, merit, or distinction – to mark the level of achievement. Eight Trailblazers will represent a broad spectrum of businesses from a range of different sectors; aerospace, automotive, digital industries, electro-technical, energy, financial services, food and drink, and life and industrial sciences. Their participation will mean that apprenticeships are firmly driven by those who deliver and use them.
Skills and Enterprise Minister Matthew Hancock said:
CIPP Policy News Journal
16/04/2014, Page 22 of 519
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