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Government should offer apprenticeship grants direct to small businesses

“Small businesses (SMEs) should receive partial grants for apprenticeships that they can redeem at local colleges”

2. How does it fit with Compass’ core beliefs of equality, solidarity, democracy, freedom, sustainability and well being?

The Government should stop dictating to business and education which skills the market needs. Let the market choose. The Government should offer 50% grants to SMEs to encourage them to take on an apprentice. The SME should fund the rest. In return the SME gets to decide the training course for the apprentice, its structure and content. Colleges would then be forced to tailor their courses to market needs. The Government share of the grant could be increased for apprentices from deprived backgrounds, the long term unemployed, single parents or those with disabilities to encourage employers to train them.

3. How does it build the institutions of social democracy, like social groups and collective and cooperative forms of ownership and control?

It would build greater cooperation between business, education and Government. It would be a bottom-up initiative, not a top-down one.

4. How much will it cost or raise and where will any cost come from?

Up to £1bn depending on the number of places offered. Much of this money can be recouped though by redirecting it from existing funding provisions for the same colleges.

5. Which groups in the electorate are likely to support or oppose this measure? Is there any polling evidence you have on this?

Colleges get extra students and funding, but only if they provide the courses business requires. Businesses get trained staff at reduced cost.

6. Is there a place or country where it’s worked? Please provide some information.

Many European countries such as Germany, Switzerland and The Netherlands have similar dual system schemes. In those countries courses are designed by business through trade and professional associations, but then need to be approved by unions and Government. This approval process can be slow.

7. What are the three main arguments in favour/against it?

For
(i) Increased training and skills in the economy.
(ii) Can be targeted at those in most need such as the unemployed.
(iii) It will deliver skills that the economy needs in the numbers it needs.
Against
(i) Cost.

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This entry was posted on Wednesday, March 4th, 2009 at 5:12 am and is filed under Solidarity. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.