Government backs down on funding cuts for young apprentices

https://www.theguardian.com/education/2016/oct/25/young-apprentices-government-backs-down-cuts-funding

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The government has backed down over plans to cut funding for training young apprentices a week before a House of Commons debate on the matter.

In a statement released shortly before the long-awaited announcement of a third runway at Heathrow, the government said it would change the proposals.

Justine Greening, the education secretary, said there would be an extra 20% payment where training providers train apprentices aged 16-18. She also announced a “simplified version” of support for disadvantaged areas.

The change of heart follows a campaign led by the Labour MP and former skills minister David Lammy, whose north London Tottenham constituency would have been severely affected by the cuts.

Last month, 55 Labour MPs wrote to Robert Halfon, the apprenticeships and skills minister, asking him to rethink proposals they said would involve cuts of 30-50% next year to funding paid to some colleges and training providers that teach young apprentices.

Lammy, who secured next week’s debate, said Greening’s changes addressed the main concerns of the proposals’ opponents: hitting 16- to 18-year-olds and scrapping support for the disadvantaged. But he criticised the government for releasing the original proposals during the summer recess and publishing the climbdown alongside the Heathrow decision.

Lammy said: “Today’s U-turn shows that the government has begun to listen to the further education sector and to the strong opposition from the Labour party, particularly when it comes to protecting funding for 16-18 year olds and young people from disadvantaged backgrounds.

“If this government is serious about social mobility they must stop damaging the life chances of working class kids by slashing support for apprenticeships and skills training.”

As part of a push to raise productivity and address skills shortages, ministers have set targets to increase apprenticeship numbers and are introducing a levy on larger employers from April to help to fund new placements. The government has also presented apprenticeships as a way of tackling inequality.

But analysis of the proposed funding rates by the further education newspaper FE Week found the two most popular apprenticeships for 16- to 18-year-olds – the level 2 apprenticeships in business administration and in construction – faced cuts of up to 52%, depending on location. The analysis also found that funding for many apprentices aged 24 and over would rise, particularly for those living in affluent areas outside the south-east and working for large employers.

Greening and Theresa May were questioned in parliament last month about the cuts by Labour MPs. Greening said she was working to get the plans right during a consultation period but May said she did not recognise the potential cuts identified by campaigners.

Announcing the changes, Greening said: “After extensive discussions with employers and training providers we are today publishing the final funding policy … The adjustments we have made to the funding policy since our proposals in August will help ensure that the reforms benefit more employers, providers and apprentices.”

Lammy said the backbench debate, supported by six political parties, would go ahead as planned.