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
- Recognise skills gaps within your business
- Get advice - through local training providers, local authorities, the national apprenticeship process
- Identify specific apprenticeships needed within your business
- Cost the apprenticeships - what will it cost and can you get financial help?
- Speak to your preferred training provider
- Recruit and select your apprentice
- Agree and commit
Help and advice
The following websites provide further guidance: