The Education and Skills Funding Agency has set aside £65 million to deliver traineeships between February and July 2021, after the chancellor pledged a £111 million boost to the scheme.
In July, Rishi Sunak said that £111 million would be used to triple the number of traineeships to help tackle the rise in youth unemployment.
In guidance to independent training providers, the Education Skills and Funding Agency said that £65 million would be delivered by July 2021 - meaning only that portion of the promised funding is guaranteed.
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According to the AELP, the guidance implies that contracts for delivery are only guaranteed between 1 February 2021 and 31 July 2021, and that should the contracts be extended the cost of all contracts could be £380.5m, which amounts to £152 million a year over a 30 month contract period.
The new guidance released also reveals the amount of money each region has been assigned to deliver traineeships.
London is set to receive the highest amount of funding at £20.8 million, with West Midlands following £11.7 million. The South West will receive the least at £2.6 million.
Association of Employment and Learning Providers chief policy officer Simon Ashworth said: “In our view, the agency has taken a sensible approach in that it wants to widen the supply base without taking unnecessary risk in terms of allocating too much initial funding to providers that have never delivered the programme before. The total amount available over the 30 month period is very encouraging and it means that providers who deliver well will be rewarded with growth on their programmes.
“Because of the delay since July, the procurement process is short but we hope the agency awards contracts mostly to those who can directly deliver the programme rather watch big allocations being immediately subcontracted. This can be achieved by looking at bidders’ track records for traineeships, apprenticeships and AEB.
“The £111 million includes employer grants which the government is paying directly to employers - the £111 million isn’t all participation money. The delay in the procurement has been hugely frustrating, but some of that funding has also been pushed out in new in-year growth to established providers which is sensible as they have the track record, but market entry is equally important.”