What is an apprenticeship?
Apprenticeships are comprehensive, formal training programmes that are heavily subsidised by the government.
Benefits of apprenticeship training
They provide a cost-effective solution to developing your staff and business:
- Helps to attract and develop the best local talent
- Support existing staff to gain the skills needed to move through the organisation
- Fill the skills gap in your business and grow
What impacts can an apprenticeship have on your business?
- 96% of employers using apprenticeships say their business has benefitted
- 80% of employers using apprenticeships say they reduce staff turnover
- 76% of employers using apprenticeships say they increase overall productivity
Who can do them?
- Anyone aged over 16
- Graduates and non-graduates
- New or existing staff
- Individuals that have the right to work in the UK
What types of roles can an apprentice carry out?
Apprentices can carry out a number of roles within a business, including but not exclusive to: Accountant, architects, digital marketer, food technologist, project manager, senior leader, solicitor, veterinary nurse and many more.
What is the business expected to commit to?
- Apprenticeships are at least a year long
- Work in partnership with a government-approved training partner
- Pay towards some of the training costs (10%)
- Pay wages to your apprentice
- Assign a mentor or line manager to support their learning
What are the financial incentives?
There are a number of financial incentives for businesses to take on an apprentice:
- No employer National Insurance contributions for an apprentice under 25
- £1,000 to support 16-18 year olds, and 18-24 year old care leavers or those with a disability
- Free English and maths training for those that need it
- Industry training at a fraction of the cost of paying full cost
- If you employ less than 50 people there are no training fees for eligible apprentices
- Local authority funding schemes
Levy paying businesses
Large businesses, with an annual payroll of over £3 million will pay into an Apprenticeship Levy.
The purpose of the levy is to encourage large businesses to employ and train staff using apprenticeships. Levy payers will then pay 90% of the apprenticeship training costs and the government pays the remaining 10%.
Levy paying businesses can transfer 10% of their unspent levy funds to other businesses. Most organisations that transfer funds do so to help their supply chain or SMEs to access training they couldn’t otherwise afford.
Non-levy paying businesses
Businesses with an annual payroll of less than £3 million will not pay into the Apprenticeship Levy.
Non-levy payers pay 10% of the apprenticeship training costs and the government pays 90%.
Process of taking on an apprentice
1. Recognise skills gaps within your business
2. Get advice - through local training providers, local authorities, the national apprenticeship process
3. Identify specific apprenticeships needed within your businesS
4. Cost the apprenticeships - what will it cost and can you get financial help?
5. Speak to your preferred training provider
6. Recruit and select your apprentice
7. Agree and commit
Help and advice
The following websites provide further guidance: