25 August 2020
The Institute for Apprenticeships and Technical Education launches a consultation on refined plans for a more transparent funding band recommendation approach
A second public consultation is being launched today to gather views on how the Institute should recommend the maximum government funding contribution for apprenticeships.
We have also responded to our previous consultation on this topic, which took place between February and May this year.
Anna West, deputy director for apprenticeship funding and approvals, said: “Our goal is to introduce a more transparent and evidence-based system. I would like to thank everyone for taking part in the first consultation. We have taken on board your feedback to further improve our approach.
“The refined model now being consulted on would be based on independent evidence, but also offer flexibility to employers to provide further information to ensure they receive appropriate levels of funding. I would like to urge as many people as possible who care about the future of apprenticeships to take part.”
The funding band system as a whole supports employers, helping more to benefit from apprenticeship levy funding by delivering value for money in the programme.
The Institute launched the project to develop a new approach in response to feedback that the existing system, based around employers gathering quotes for how much training costs and comparisons with existing standards and qualifications, was not transparent enough.
A report by IFF Research into the actual costs of delivering apprenticeships was used to develop a more transparent model, drawing on average eligible delivery costs, which is now being consulted on.
The first consultation set out our core model and asked for views on addressing differences in costs.
We were pleased to receive over 200 consultation responses. The majority indicated that the proposed model was simpler to understand and strengthened transparency.
We used feedback from respondents to develop a single approach that provides trailblazers with an early estimate of the maximum government funding level their apprenticeship stands to receive based on an automated “rates-based” model.
If a trailblazer considers this inappropriate, they can provide information to allow us to make a bespoke estimate of likely eligible costs.
The consultation will run for 6 weeks, closing at midnight on 6 October 2020. A series of supportive virtual roadshow events will also take place during this period.
If you have any questions please contact Institute-Funding.CONSULTATION@education.gov.uk