2015 Funding for training providers and FE Colleges
On the 8th of July 2015 the summer budget was announced by George Osbourne. The Chancellor of the Exchequer announced plans to put in more resources into apprenticeships with a scheme to take on 3 million more apprentices by the year 2020. The changes will not be stopping there as Mr Osbourne announce there will be a levy for big businesses. This levy will help fund the 3 million apprenticeships planned and will also be supporting learning providers that will be delivering apprenticeships.
As time goes by more information will be revealed on how the Department of Education and the Skills Funding Agency will be implementing these changes.
FE Colleges however have received funding cuts for the year 2015/2016 in favour of work based qualifications. One of the reasons is because FE colleges are less able to guarantee jobs for learners as opposed to training providers whose main objective is progression into work. Private training providers are also able to be more flexible in timescales and course content.
The guest speaker from Eversheds Legal @ LEP Advisory Meeting on 20.07.2015: " Private providers were generally better placed to deliver Apprenticeships for Employers under the planned reforms as they are quicker to respond to employer needs and with less overheads than FE they should be able to compete on pricing as reforms will increase competition within the sector significantly"
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