Latest proposals by the Government designed to give employers more control over what their apprentices learn could end up causing more harm than good.
According to the ECA, Government proposals which suggest firms pay for training costs up front and then claim back the costs through the PAYE tax system could see smaller companies abandon taking on trainee apprentices due to the financial burden on their balance sheets.
The ECA was shocked by the response from a survey completed by its 3000+ members:
- 94% fear that the reduction in the Government’s contribution to the cost of an apprentice’s training will lead to their company taking on no apprentices or fewer apprentices in the future
- 90% are opposed to any cut in Government support for SMEs
- 95% feel that the funding proposals will adversely impact on the cash flow of small businesses
- 95% consider that the proposed system will result in increased bureaucracy for employers
Interact and have your say below. What affect do you feel that the proposals may have on your industry? Do you think that it is only smaller companies that will feel the financial burden of training costs up front?