The Apprenticeship Scheme adjustments, which were announced at the government conference, are estimated to cost £243,360 annually.
Minister for Education, Sport and Culture provided information about the associated costs, funding, and sustainability plans in response to a written question.
Onchan MHK Julie Edge requested to know the costs of the scheme, where the funding originated, whether sustainable funding has been agreed and if she will publish the business case for an in-year change, and how the initiative will be sustained beyond 2025/26.
Apprenticeship Costs
Education Minister Daphne Caine revealed that the changes to the Apprenticeship Scheme involve significant financial outlay.
Backdated payments, covering the period from April 2025 up to the present, amount to approximately £141,960.
Looking ahead, the predicted annual cost of maintaining the revised scheme is estimated at £243,360.
Funding
In relation to funding, the Department for Enterprise submitted an initial business case to the Economic Strategy Fund, managed by Treasury, requesting additional funding for apprenticeships, vocational training and third sector initiatives.
This business case was not supported on the grounds that it did not meet the Terms of Reference of the Fund.
However, political approval was received for DESC to revert back to the position prior to April 2024 regarding incentive payments.
Treasury’s agreement enabled DESC to restart incentive payments for employers with 10 or more employees backdated from April 2025.
This decision was subsequently agreed in a Treasury Board meeting and revenue contingency identified as the source of funding for the financial year 2025-26.
DESC is currently considering how to sustain the funding going forward and this was part of discussions with Treasury regarding the 2026-27 Budget.
