Labour MPs worry over changes to apprenticeship funding

Fifty-five labour MPs express concern that UK apprenticeship funding changes risks cutting number of schemes on offer.

Planned changes to funding available for apprenticeships have been opposed by Labour MPs, who say it contradicts Teresa May’s pledge to boost social mobility and claim it may halve funding to some institutions.

Over 50 MPs have written to the Apprenticeship and Skills Minister, Robert Halfon, asking him to reconsider proposals that would involve cuts in May 2017 of 30-50% to funding rates that are paid to colleges and training providers that take on young apprentices.

The letter, organised by Tottenham MP David Lammy, said that the government “talk a good game” on social justice but was in fact slashing programmes for people trying to improve their life chances with hard work.

In the letter, Labour MPs warn the cuts would be “devastating in deprived areas”, expressing how the actions will affect the government’s pledge to create three million apprenticeships by 2020, and overlooks the PMs promise to ‘help anybody, whatever your background, go as far as your talents will take you’.”

The SFA cuts are said to fall on some apprenticeships where there is a serious skills shortage, such as housebuilding.

However, the government says that despite the cuts to the SFA funding, the overall apprenticeship budget will rise to £2.5Bn by 2019-2020, with increases elsewhere added to make up the difference.

Through the new levy, the £2.5Bn investment in apprenticeships is twice what was spent in 2010-2011.

The government is bringing in a new apprenticeship levy, which will apply to larger businesses with an annual pay bill for over £3M.

Apprenticeships and Skills Minister, Robert Halfon has said that government reforms were aimed at helping young people, with proposals to give employers an extra £1,000 for every young apprentice they take on, with no extra fees.

 

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