The Confederation of British Industry (CBI) and the University and College Union have welcomed Doug Richard's review of apprenticeships, particularly when it comes to the way training courses should be paid for.
Richard wants a closer relationship between providers and employers, while calling for employers to pay providers of apprenticeship training directly, at which point tax credits or other incentives should be passed on from the government to those employers.
The CBI's Director for Employment and Skills Policy says: “It’s rightly recognised that we need a simple, accessible funding system, and businesses will welcome the idea of a skills tax credit.”
UCU General Secretary Sally Hunt says: “We have long called for stronger employer incentives to train and believe the proposal for government funding for apprenticeships to be routed through the National Insurance or tax system would get more employers on board.”
National Chair of the Federation of Small Businesses, John Walker says that the federation was "particularly pleased" at the review's call for the clear definition of an apprenticeship, which would improve the image and make it much clearer what apprentices and employers would get from each other.
But not everybody offering an opinion on Doug Richard's review was so enthusiastic about it. Some are quite cautious.
For example, Chief Executive of the Institute for Learning, Toni Fazaeli, says: “Assessors have told us that cash incentives on offer, particularly for small businesses, are not effective, so we are interested in Mr Richard’s recommendation that incentives should be offered through the tax system instead.”
Skills Policy Manager for the Association of Colleges, Teresa Firth, says the association was keen to see colleges being brought closer to both employers and apprentices, but "our experience suggests that the stronger the direct relationships, the better the experience for all. However, there is little clarity on how this relationship will be managed or formed.
“We believe there may well be some significant challenges for all stakeholders when it comes to implementation, particularly when considering the proposed funding route.”
General Secretary of the National Union of Teachers, Christine Blower, sums up Richard's findings best, saying: “For too long apprenticeships have not been valued enough in society. Young people deserve the recognition that this route to employment is worthwhile and just as credible as gaining a degree from a university”.
