Question

To ask the Secretary of State for Business, Innovation and Skills, what factors he took into account in deciding not to adopt a pure provider payment model in reform of apprenticeship funding.

The 2013 consultation on Apprenticeship funding reform sought evidence on the feasibility and impact of three different mechanisms for giving employers more control over the funding. Following consideration of the responses to this consultation, the pure provider payment model was ruled out on the basis that it was the least likely to deliver the intended aim of giving employers true purchasing power.

The subsequent Technical Consultation published in March 2014 sought views on two models - a PAYE model and an apprenticeship credit model which are consistent with an employer-led Apprenticeships system. We are currently evaluating the responses to this consultation and will announce which payment mechanism we plan to pursue in the autumn.

We have established a ministerial advisory panel on Apprenticeship standards, made up of experts to advise the Secretary of State on the approval or rejection of employer designed Apprenticeship standards and assessment approaches.

We will refresh the Skills Funding Agency register of approved Apprenticeship training providers to ensure that only reputable providers are able to offer Apprenticeship training and organisations doing so will be subject to Ofsted inspection.