The Role of Training Allowances in Incentivising the Behaviour of Young People and Employers

Lisa O'Donnell, Thomas Spielhofer, Julie Nelson, David Sims

18 August 2006

Research report available to download from DCSF

Research brief available to download from DCSF

The results reported here are key findings from a large scale survey of employers, apprentices, LLSCs and providers carried out by the NFER between June 2005 and March 2006, which explored their views and experiences of the use and impact of training allowances.

Key Findings

  • Female apprentices were found to be significantly more likely to be receiving a training allowance instead of a salary than males. This appeared to be linked with the fact that females were more highly represented in sectors such as childcare and land-based occupations.
  • Thirty per cent of young people reported that they would have started their apprenticeship even if they had found out, before they started, that they would not be paid for it. However, the remaining young people would have taken an alternative route, most commonly other paid employment.
  • Just under a third of trainees were satisfied with the level of payments they received during their apprenticeship. However, more than half were not satisfied - 28 per cent were dissatisfied, while a further 24 per cent were very dissatisfied. More than a quarter (27 per cent) of trainees who had dropped out of their training stated ‘not getting enough money’ as their main reason for not completing their apprenticeships.
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