Question

To ask the Secretary of State for Business, Innovation and Skills, for what reason the option of maintaining the current provider-funded model was dropped in his Department's second consultation on funding reform for apprenticeships.

The 2013 consultation on apprenticeship funding reforms sought evidence on the feasibility and impact of three different models for reforming apprenticeship funding. Following consideration of the responses to these, the second consultation sought views on two models—a PAYE model and an apprenticeship credit—that are consistent with an employer-driven apprenticeships system. A pure provider payment model was ruled out, as evidence from the first consultation indicated that this model was the least likely to deliver the intended aim of giving employers true purchasing power.