The Association of Employment and Learning Providers (AELP) has raised concerns over the government’s proposals to direct funding for apprenticeships straight to employers.

Chancellor George Osborne, in the Autumn statement, said a new funding model would use Her Majesty’s Revenue and Customs (HMRC) systems to route funding directly to employers.

And AELP’s position paper for an upcoming government technical review on the proposals was seen by FE Week.

Stewart Segal, AELP chief executive, said: “The government’s proposal on funding could potentially create a barrier for small and medium-sized enterprises.

“The majority of apprentices are in a workplace with only one or two other apprentices so to put in all that infrastructure is a lot for just two learners.”

The document also expresses concerns about whether the government would contribute to funding for 17 and 18-year-olds.

The Department for Business, Innovation and Skills (BIS) consulted on apprenticeships funding last year following the Doug Richard Review which recommended greater employer ownership of the apprenticeship system.

A BIS spokesperson could not say when the technical consultation would be launched.