2.27 The costs and benefits of investment in skills should be shared between the Government and employers. This is already reflected in contributions to young people’s learning in the workplace. In Modern Apprenticeships employers invest in their future workforce skills with support from TECs. The same principle will apply to National Traineeships, and in the New Deal for the under-25s where employers will meet some of the learning and other costs for young people in subsidised jobs. From next September, for employee training which directly benefits individual employers, further education colleges will share this cost equally with employers by increasing fees. This will bring in an estimated additional £20 million next year, rising after that. Colleges will invest this income to help increase access.

2.28 Employers will also have an opportunity to support their employees in learning by contributing to their individual learning accounts. We will strongly encourage employers to do so, and to offer other support, such as time-off, in order to assist their employees to learn.