The next step in apprenticeship reform was outlined yesterday (13 January) by the Government and pledged to give employers direct control for the funding of apprenticeships.

In its reponse to The Future of Apprenticeships in England: Funding Reform Technical Consultation, the government underlined its continuing commitment to making England’s apprenticeship system the best in the world.

Skills Minister Nick Boles said: “Last month we celebrated the start of the 2 millionth apprenticeship since 2010. This was an important milestone in the government’s long term economic plan. If we are going improve and expand our apprenticeship programme further we must put employers in the driving seat - and give them control of both the design and funding of apprenticeships.”

According to the government, giving employers control of apprenticeship funding will enable them to select the training that best meets their skills needs and will drive up the quality of apprenticeships. The government response outlines, that while putting employers in control of apprenticeship funding is a non-negotiable part of the reforms, feedback received makes it clear that further detailed design work is needed before there can be a final decision on how this would work in practice. The government says it 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.

The funding reforms will continue to be developed alongside the trailblazer programme, giving employers control over the design of apprenticeships. Over 1,000 employers, of all sizes, are now part of the trailblazers scheme in industries including engineering, legal services and health and social care.

Responding to the government announcement however, the Federation of Master Builders (FMB) claims that the future of the construction industry now hangs in the balance.

FMB chief executive Brian Berry said: “Today’s announcement by the Skills Minister offers no clarity or reassurance regarding the future of apprenticeship funding. Despite the business community – across many sectors – repeatedly warning government of the potential impact of their proposed reforms on the desire and ability of SMEs to train apprentices, we have been told that giving employers direct control of apprenticeship funding remains a non-negotiable part of the reforms.”

Berry continued: “We have waited eight months for the government response to their Spring 2014 consultation and have today been presented with two sides of A4 which only serve to fuel our fears about the ability of SME construction firms to train apprentices. If SME firms – particularly micro-firms – are asked to pay for apprenticeship training up front it will have a negative impact on cash flow and increase levels of bureaucracy no matter how simple the system is.”

“I urge government to think again and not to undermine the construction recovery which is tentatively moving in the right direction but could easily be set off course if we don’t have enough new skilled workers entering the industry. Indeed the Construction Industry Training Board (CITB) predicts that 200,000 new roles will be created in our sector over the next five years and a key way to fill these roles will be via apprenticeships. To experiment with apprenticeship training at such a time and against the advice of large swathes of the business community is irresponsible and foolish,” Mr Berry added.