UK Fact-File Part 5:
Small Business Incentive Programs

5.2 UK Training Incentive Schemes

There are several schemes backed by the UK government to offer and encourage training. These range from apprenticeship schemes for school leavers and young persons to on-the-job training for all ages and skill levels. Financial assistance is available to new business start-ups and established companies alike to assist with the implementation of training programmes for staff.

The Train to Gain scheme was part of the UK government’s overall plans to support business. Train to Gain aimed to assist employers of all sizes to improve the skill-sets of their employees, with training provided from basic level to higher levels, and even management training. Small and medium-sized companies were the priority beneficiaries of the Train to Gain scheme.

Skills advice was provided through business link advisers, colleges or training providers, who identified local training opportunities tailored to an individual business. A degree of funding was sometimes available to assist with training – up to GBP1,000 for leadership and management skills training. Small businesses with less than 50 employees could also receive assistance with the cost of staff wages whilst away from the workplace undertaking training. New UK government initiatives were introduced in late 2008 to specifically assist small companies (with less than 250 employees) during the global recession.

The Conservative-Liberal Democrat coalition government has cut further education funding (with the budget in this area to be reduced by 25% over the period to 2014-15), and has announced that the Train to Gain scheme is to be scrapped.

In its 'Investing in Skills for Sustainable Growth' document, the Department for Business, Innovation and Skills (BIS) explained that it would, however, be increasing funding for adult apprenticeships, putting in place co-funding initiatives for the training of lower-skilled workers in SMEs, and introducing government-backed training loans for learners aged over 24, alongside increased investment in Professional and Career Development loans (to compensate for a gradual withdrawal of fee subsidies).

Learn Direct has been tasked by the UK government to provide high-quality learning for people over the age of 16. Some of the training offered targets those who have perhaps not had the opportunity to have access to traditional education and learning, and covers literacy and numeracy as well as other courses leading to qualifications in ICT, food hygiene and business administration. The learning is carried out online and the advantage for employers is that it can be done within the workplace. Government funding is available to assist with the cost of training employees though Learn Direct – who also work closely with Train to Gain. The amount of funding will depend on the individual employee and the nature of the employer’s business.

The Investors in People scheme also provides tailored assistance to businesses, both start-ups and established operations. However, this assistance is provided on a paid-for basis.

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