Revealed: Dole for apprenticeships cost blow-out

The Government's dole for apprenticeships scheme could start rolling out this year, with proper implementation in 2019.

Newshub can reveal details of the scheme after an embarrassing Government blunder.

The Government blacks out sections it wants to keep under wraps in documents it releases. A simple cut and paste into a Word document revealed to Newshub the figures it wanted to keep restricted in a Cabinet paper released on Wednesday.

The redacted information shows the Government's planned dole for apprenticeship programme comes at a much higher price than Labour signalled during the election.

The Finance Minister Grant Robertson may be in for bit of a shock when he gets the bid for funding.

Labour policy from the election estimated the cost of the policy to be $13.2 million per year. The Cabinet paper shows it is likely to be about four times that - anywhere between $51m and $63m a year.

The policy will see employers paid a government subsidy equivalent to one year on the Jobseeker Support Benefit to take on young workers who are currently on the benefit.

The Cabinet paper shows the aim is to have the programme introduced in 2018/19 and fully rolled out by 2020 - but that is dependent on funding being made available in next year's Budget.

The costs are based on estimates that 4000 people will take up the initiative. Each participant is expected to cost $12,750 to $15,750 per year in wage subsidies and wrap-around supports. The paper warns the costs are preliminary estimates.

It warns the Government that the dole for apprenticeships scheme's success will be dependent on a mutual willingness from both workers and employers.

On Wednesday afternoon, the document briefly disappeared from the Ministry of Business Innovation and Employment's website. It was later re-uploaded, in an format that did not allow for copy/pasting.


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