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Apprenticeship Policy (Apprenticeship Levy (• any employer with a…
Apprenticeship Policy
Apprenticeship Levy
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• All payments go into a digital account which goes for funding in job training and anything that goes in will be topped up 10% by government
• Small employers will get 90% subsidy on training for full time apprentices which must be in and out of work training for 12 months
• Each apprentice can cost a max of £27000 but its dependent on the sector how much they will receive
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Overview
Aim
To have 3 million apprenticeships starts in England 2015-2020 which would average 600,000 a year, a 20% increase from 14/15
Regulatory Framework
Purpose
Ensure subsidy is paid out for approved apprenticeships only and to ensure quality of apprenticeships under new scheme
Characteristics
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• To get a subsidy an employer must choose a provider from the register of apprentice training providers (ROATP)
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Rationale
Why was this necessary?
• Employers tend to underinvest in training as they believe they will not reap the benefits and don’t want to invest in it
• Compared with other economies UK has a productivity & skills problem, largely because there is no pressure for vocational training as an alternative to secondary education
• Research shows that apprentices have a higher return than other vocational training however no guarantee that these new apprenticeships will be of high quality (as they may be rushed)
Evaluation
Effects
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• The levy disincentives employing additional workers and they will reduce profits which could decrease investment
• The subsidy for off the job training increases incentive to employ apprentices (however 16-18 already had 100% subsidized but for 19+ good)
• Some will receive funding for training they would already do so lost money and other training may be labelled as apprentices just to get funding which could mean no extra productivity
• As training is subsidized no incentive to minimised costs of training (which could be a good thing)
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