CIPP response to Apprenticeship funding reform technical consultation

The CIPP has published their formal response to The Future of Apprenticeship Funding in England: Reform Technical Consultation.

The government confirmed in this consultation that responsibility for funding will pass to the employer and that HMRC will be responsible for delivering the funding payments. The two options considered in the consultation for directing apprenticeship funding through employers are:

• Through the PAYE system and real time reporting submissions; Employment Payment Summary (EPS); or
• Through a direct ‘apprenticeship credit’ model; an online account that employers and government can contribute into.

Karen Thomson, Associate Director of Policy, Research and Strategic Visibility commented:

“If the apprenticeship funding model must change then the payroll profession would prefer the government to design a direct credit model. The PAYE model requires two operating systems depending on the PAYE liabilities and would impose a massive administrative burden on the small employer in particular, not only by having to keep manual records of funding permitted versus payments to HMRC, but also the risk of unintentional non-compliance and resulting penalties.”

Based on the feedback received from the online survey and the CIPP policy team’s meetings with the Department for Business, Innovation Skills (BIS) and HM Revenue Customs (HMRC), the CIPP opposes the current PAYE model. The CIPP recommends that:

• BIS dismisses the PAYE model as a solution and instead invests in a direct credit model or alternative that does not require the use of a payroll system.
• Should the government decide on the PAYE model, BIS and HMRC work with the CIPP and its members to design an automated model as described earlier in this submission.
For full details, read the CIPP’s response to the consultation through the news link below.

CIPP response to Apprenticeship funding reform technical consultation