19 August 2013

The CIPP are working in partnership with the Chartered Institute of Personnel and Development (CIPD) to conduct research into the proposals outlined by the Department for Business Innovation & Skills and the Department for Education on apprenticeship schemes.

Whilst this area would not normally impact payroll, as one of the proposals is for employers to obtain funding directly, and through the PAYE system it is essential payroll professionals have their say. Please help us by completing our survey.

To assist with answering the following questions you should review the consultation document consultation document. We have also provided a document, we believe you should also review, written by the UK Commission for Employment and Skills, which illustrates a potential model that could be adopted in respect of the PAYE reclaim of funding.

Funding apprenticeships through Pay As You Earn

There are three models in the proposals and these include:

1. Direct Payment Model: Businesses register Apprentices and report claims for government funding through a new online system. Government funding is then paid directly into their bank account.

2. PAYE Payment Model: Businesses register Apprentices through a new online system. They then recover government funding through their PAYE return.

3. Provider Payment Model: Government funding continues to be paid to training providers, but they can only draw it down when they have received the employer’s financial contribution towards training

Examples have been provided in the consultation document on pages 19 and 20 using all three methods, and we would recommend you look at these.

The closing date for the survey is Friday 13 September 2013, we thank you for your assistance.