Osborne pledges further funding for skills and education

Speaking today in Parliament, Osborne said an extra £40m will be provided to increase the number of people starting higher apprenticeships by 20,000, and that the cap on university places would be removed, allowing an estimated 60,000 more young people to go to university every year. A further £50m will be made avilable to fund the teaching of STEM subjects per academic year.

The funding for apprenticeships is aimed at delivering higher apprenticeships that start in the 2013-14 and 2014-15.

The chancellor’s Autumn Statement states ‘government will develop a model which uses HMRC systems to route apprenticeship funding direct to employers. It added that government will consult on the technical details of the system in early 2014, and on the option of an alternative funding route for the smallest businesses.

Today’s announcement, part of a wider economic forecast delivered annually to Parliament, has received a cautious welcome.

Steve Radley, EEF director of policy said: ‘Businesses have long been calling for a revolution in how apprenticeships are funded, and today their calls have been heard.