Government Spends £4.2 Billion in Apprenticeship Training: Justified in UK?

In Queen’s Speech 2015, the Government has set out for an intention to create a duty on providing report on the progress in the process of meeting targets of 3 million new apprenticeships by the year 2020. It is expected that the public sector bodies will be in requirement of employing apprentices and in fact they might set targets to enhance the apprenticeships. As per the Welfare Reform and Work Bill it is obligation of government to report every year on the progress that has been made towards the process of meeting targets. The 2015 Summer Budget therefore set out plans for introducing and levying employers to create a fund that is responsible for supporting apprenticeships.


Options Cap 1 Cap 2 Cap 3 Cap 4 Cap 5
Core Government Contribution Cap (£ 2 for every £ 1 from employer) 2000 3000 6000 8000 18000
Additional Incentive Payments
Recruiting 6-18 year old 600 900 1,800 2,400 5,400
For a small business (less than 50) 500 500 900 1,200 2,700
For successful completion 500 500 900 1,200 2,700
Maximum Government Contribution 3,600 4,900 9,600 12,800 28,800

New Apprenticeship Funding Model (£)

Funding is an important aspect of apprenticeship of government reforms. But, it is also recognized that investment, which is central to reforms of apprenticeship provides employers with greater control. Although the employers contribute significantly to apprenticeship costs through wages, in-house training, mentoring, reform investments will ensure employers to contribute to costs associated with external training. Moreover, through reform investments the employers can be used for routing the contribution of the government and on the process it would incentivize the employers to drive up the relevance and also quality of such training.

Apprenticeships are now gradually becoming important for long term plans made by the Government of UK for the purpose of improving workforce development and enhanced level of productivity. The apprentices have the potentiality to make great impact on future. In order to achieve this, the government is investing heavily to raise the standards of all forms of apprenticeships up to the best level by making apprenticeships more rigorous and also responsive to the needs and requirements of the employers.


The investments are made in order to base apprenticeships on easy to understand and short standards of competence that are designed by the employers for the purpose of meeting the needs including of small firms. The apprenticeship will be in requirement of demonstrating competence through the aid of rigorous assessment that is mainly focused on competence testing at the end of apprenticeship. Gradation has also been introduced for the purpose of encouraging apprenticeships for excellence. The requirements of English and Maths will be strengthened in order to reflect the importance of transferable skills. Trailblazers of range of sectors are to be used for developing the first new standards and also high level approaches for assessment so that other sectors can soon follow.

1Source: Skills Funding Agency, Trailblazer Apprenticeship Funding 2014 to 2015 Requirements for Employers, Mar 2015

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