Apprenticeship funding reform in England payment mechanisms and funding principles

14 January 2015

The Government's response to this consultation confirms that further detailed design work is needed before there can be a final decision on how the funding reforms will work in practice.

This consultation asked for views on how the Government will issue funding for apprenticeships through employers. The response outlines, that while putting employers in control of apprenticeship funding is a non-negotiable part of the reforms, it is clear from the feedback received that further detailed design work is needed before there can be a final decision on how this would work in practice. The government is committed to delivering a simple, effective funding process which works for employers of all sizes and further collaboration with the sector will take place to ensure this is achieved.

CIPP comment In May 2014 the CIPP published their response to the Apprenticeship funding reform technical consultation. Findings from the online survey we conducted showed that the majority of CIPP members and the payroll profession as a whole did not support the PAYE model proposal. In our response we recommended that BIS dismiss the PAYE model as a solution and instead invest in a direct credit model or alternative that does not require the use of a payroll system, and that should the government decide on the PAYE model, BIS and HMRC work with the CIPP and its members to design an automated model. The Policy Team will continue to be involved in consultation and will keep the payroll profession updated accordingly.