What costs are involved?
Is there a cost for employers?
Like all employees, apprentices must be paid a wage. The National Minimum Apprenticeship Wage is currently to £3.40 an hour.
This is applicable to 16 to 18-year-olds – and 19-year-olds and over – in the first year of their apprenticeship. We encourage you to consider a wage that is attractive to apprentices and fitting of the job role.
There is also the cost of the supervision, support and mentoring that you will need to put in place to support the apprentice. These associated costs are not insignificant – however, Skills Funding Agency will match employer’s commitment to hiring apprentices by covering all or part of, the training costs.
Is anything being done to help SMEs take on an apprentice?
Like any other business, SMEs can benefit from employing apprentices.
The Skills Funding Agency is piloting a number of programmes to explore how the government’s support can be enhanced, taking into account the unique cost pressures that SMEs face.
Currently, the government offers an Employer Incentive under the Age 16-24 Grant. The Age 16-24 Grant is aimed at helping eligible employers offer young people employment through an apprenticeship, by providing a grant to assist employers to recruit a young apprentice.
The grant is £1,500 per apprentice and is available after each apprentice has been enrolled on a training programme for 13 weeks.
For more information, visit the Apprenticeships website.
How is the apprenticeship funded?
The government will fund the training costs for apprentices aged 18 or under on the first day of their apprenticeship, for the duration of the course.
For apprentices aged 19 and over, at the start of the programme government funding is reduced by at least 50%.
To ensure that we still deliver a high-quality training experience for you and your apprentice, an employer contribution will be payable for these apprentices.
Fees vary depending on the apprenticeship framework.