U-turn on young apprentice funding cuts but ‘more needs to be done’

Motor industry body welcomes U-turn but fears the changes don't go far enough

U-turn on young apprentice funding cuts but ‘more needs to be done’
IMI CEO, Steve Nash.

The Institute for the Motor Industry (IMI) has welcomed the government U-turn on its plans to change funding for apprenticeships by uplifting 16 to 18-year-old apprenticeships by 20 per cent and securing funding in deprived areas but fears the changes aren’t far enough.

In August, the government proposed controversial plans to cut funding for existing apprenticeships programmes by as much as 50 per cent.

Having reinstated the deprived areas payments in response to political pressure the remaining cuts are still as much as 30 per cent and the IMI believes this is still a huge concern.

‘Huge concern’

Many businesses fear they will not be able to secure apprenticeship places at these new rates because the courses won’t be economically viable for providers to run.

IMI CEO, Steve Nash described the original plans as a ‘car crash’ for the motor industry that needs 15,000 apprentices every year.

Whilst welcoming the government’s positive response to the request to review the funding proposals for existing apprenticeship frameworks, the IMI says some problems remain with the implementation of the new apprentice system.

It’s calling on Ministers to remove some of the red tape involved and improve communications with employers to smooth the transition.

As things stand there is currently only one new apprenticeship standard available for the retail motor industry – level three maintenance and repair – and many employers are still not fully aware of their responsibilities under the Apprentice Levy regime, which comes into effect in May 2017.

What the IMI is calling for:
  • A one-year delay to the cuts to current frameworks.
  • The simplification of the processes to speed up the creation the new Apprenticeship Standards.
  • A programme of communications for employers to help them better understand their responsibilities under the Apprenticeship Levy system.

Steve Nash said: “The government needs to go further to avoid the potential damage it is in danger of doing to the apprentice system.

“The IMI is recommending the government delay the cuts to the current framework, simplify the processes for creating the new Apprentice Standards, and build an effective communications programme to help employers understand much better what their responsibilities are under the new Apprenticeship Levy system.”

For further information about the IMI, follow the ‘more details’ link below.

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