Can Someone Please Explain The Changes In Adult Apprenticeship Funding

This August sees a change in the way adult apprenticeships are funded. You may not think this applies to you but apparently "Adults" in this case are defined as people aged 24 or older, and if they're looking for funding for an advanced or higher apprenticeship, they'll find that the Skills Funding Agency will no longer be making any kind of contribution towards their training costs.

From August 1st onwards, both learner and employer will be expected to cover the entire cost of training, which could be done in a number of ways:

• The adult apprentice could cover the total cost
• The employer could cover the total cost
• The employer could lend the apprentice the whole sum required (or part of it) and recoup it through salary deductions
• The adult apprentice could take out a Professional and Career Development loan
• The adult apprentice could take out a 24+ Advanced Learning loan

Professional and Career Development Loan

This is a commercial bank loan ranging from £300 to £10,000. The adult apprentice will have to repay it upon completion of their training, but until then the government pays the interest on that loan. Many high street banks offer this kind of loan, but adult apprentices should make sure they apply at least three months before the start of the course, to give the bank time to process their application. For more information, visit: https://www.gov.uk/career-development-loans/overview

24+Advanced Learning Loan

Adult apprentices can apply for this loan as long as they're aged 24 and over and their course starts after August 1st 2013. The course could either be at A-level, or an advanced or higher apprenticeship. This loan is not income-dependent, and doesn't require a credit check. As with student loans, repayments don't start until April 2016 - and only then if the borrower's salary level has reached £21,000 a year. The advantage of this kind of loan is the fact that apprentices can get up to four of them - but only one at a time. To find out more, visit: https://www.gov.uk/advanced-learning-loans

So even though the Skills Funding Agency won't be helping adult apprentices from here on in, there are still ways and means to finance the training required for the kind of qualifications that lead to higher-paying positions. And never forget by doing an apprenticeship in the first place you're putting yourself in line for £105,000 more earning over the course of your career, not a bad deal all told...