The role of training allowances in incentivising the behaviours of young people and employers

This research explored the use and operation of training allowances and the impact that they have on the behaviour of young people and on employers. Specific objectives were to: develop a better understanding of how training allowances influence young people’s decisions to enter, and remain in, vocational training programs; determine what impact the availability of training allowances has on employers offering training opportunities. The research methodology comprised an initial scoping study, involving interviews with trainees, training providers and employers; a questionnaire survey of a representative sample of 5,000 trainees; and telephone surveys of 25 training providers, 62 employers and 40 Local Learning and Skills Councils (LLSCs). The Minimum Training Allowance (MTA) was introduced to provide financial support to non-employed learners aged 16 to 24. Administered by the Learning and Skills Council (LSC), the MTA is set at UKP 40 per week, though there is flexibility for Local Learning and Skills Councils (LLSCs) to pay more depending on local circumstances. The research revealed that: there a wide variety of views and experiences of training allowance payments across the UK; the amount that young people receive while doing an apprenticeship is very important in ensuring take-up and continued motivation; the MTA was not a key factor in ensuring completion of apprenticeships, strongly suggesting that training allowances should be viewed as a short-term solution to the funding of work-based learning placements; training allowances provided a strong incentive for some employers to take on apprentices; although practice in relation to the use and payment of MTAs appears to have improved, greater standardisation is still needed. Show less