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Government funds for training initiatives aren't keeping up with employer demand

Government training funds are drying up, meaning employers will struggle to invest in their staff, according to the British Chambers of Commerce (BCC).

The BCC claims the Learning and Skills Council (LSC) is putting out the message to employers to invest in training during the recession but, because of the larger number of employers willing to participate in apprenticeships and Train to Gain programmes, many will not receive funding.

David Frost, director general of the BCC, said: "Employers understand investing in training is crucial, especially during a downturn. But a failure in Government accounting means many who seek public funding will be disappointed to find the taps have been turned off.

"With training providers now having to turn away employers who wish to train their staff, many are asking how the LSC could have already taken its eye off the ball."

In response, a spokeswoman from the Learning and Skills Council told HR magazine: ""The increases in demand for training are very encouraging, particularly at this time in the economic downturn. They demonstrate the success of the employer responsive programmes and the significant progress made in establishing employer demand and boosting provider capacity to deliver.
 
"But, left unchecked, Train to Gain and 25+ Apprenticeship activity will exceed the budget allocations we have available in the 2009-10 financial year and create further pressures in future years. The LSC will take action now to agree with colleges and training providers who offer high quality provision against agreed priorities, contracts that enable growth in Train to Gain and Apprenticeships to continue, but within the levels of investment we have available.
 
"We continue to work with each college and training provider to take appropriate action and will continue to manage college and training provider expectations to within the overall maximum contract value agreed with them. We will also continue to ensure that sufficient levels of provision are available to employers and learners across the whole of the year."