EEF has submitted its response to the BIS technical consultation on Apprenticeship funding reform.
Download the full submission below.
Creating a responsive training market can be achieved by placing the funding in the hands of the employer, allowing the employer to become the customer, able to choose their apprentice, provider and what will be apprenticeship standard.
Through such a model employers can demand the provision they need as well as hold providers to account on delivery.
However, there are companies who have built up strong relationships with both public and private providers, who are responsive and fully understand industry needs.
If employers currently feel able to demand the provision they need and are happy to delegate aspects of the funding system to a provider or agency such as a GTA, then they should be able to do so. Employers must have the choice and flexibility to adopt a model that works for them and government needs to take this into account.
The proposed funding reforms are a fundamental change to apprenticeships. Employers have long waited for government to commit to changing the apprenticeship system so that is responsive to business needs and increases the number of high quality apprenticeships.
Such reform is not easy, or simple, and transition needs to be careful and slow.
We are concerned that this consultation has been published on the assumption that the systems will be simple and easy to use. We are not convinced that government has yet thought out how the proposed models and wider apprenticeship reforms will work in practice.
Government would benefit from slowing down the reforms and better engaging with industry, particularly those leading the Trailblazers to determine exactly what a new system should look like. Such a system would need to ensure that key performance indicators for apprenticeships would not be .
After full and careful consideration we have concluded that the Apprenticeship Credit Model is unworkable and we believe that the only credible model proposed is that which uses the HMRC platform. There is still much work to be done on the proposed model and the wider reforms and further consultation with industry is required.