Apprentice Funding Through RTI (2)

Image may be NSFW.
Clik here to view.    In July 2013, the Government launched a Consultation looking funding reforms for apprentices in England.  This looked at the best way the employer could control Government funding for apprentices and outlined three proposals:

1.   Direct Payment

Where funding would be paid directly by Government to the employer

2.   PAYE Payment

Where apprentice funding would be achieved by the employer reducing the monthly remittance to HMRC – funding details would be provided on the RTI submissions so that HMRC and the employer would be able to reconcile the monthly PAYE payment.

3.   Provider Payment

Where Government funding is paid directly to the training provider

Both of the employer-routed models would have increased employer involvement and administration and would not have been deliverable until 2016 at the earliest.  The 2013 Consultation was followed by an announcement at Autumn Statement 2013 that HMRC’s systems would be used to deliver funding to employers.  This was followed by a Technical Consultation in March 2014 seeking view on how this would be delivered.

In January 2015, Nick Boles MP, Minister for Skills and Equalities, signed a Government Response to the March 2014 Consultation.  To the relief of employers and software developers, Mr Boles said:

I understand the apprehension from many employers, especially small businesses, about any potential administrative burdens or negative impact on cash flow. In the context of the Government’s ambitions to grow and improve the programme, I will not introduce bureaucracy that will make it more difficult for employers to offer apprenticeships.  

In short, ‘further detailed design work is needed before we can reach a final decision on which funding mechanism will be taken forward to meet our shared aim of more high quality apprenticeships, where employers hold the purchasing power’.

Image may be NSFW. Clik here to view.   Comment So, plans for this to be delivered via the PAYE model seem to have been shelved, however, has it only been put on the back-burner?  Mr Boles also says in his Response: Giving employers direct control of apprenticeship funding remains a core and non-negotiable part of our reforms. Chances are that this will resurface, though not within this Coalition Government’s administration.

Further Information

• Gov.UK  – Funding Reform Technical Consultation
• Gov.UK  – Technical Consultation Response
• Payroll Help 27 August 2013 – Apprentice Funding Through RTI?