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The cost of an apprentice – You could get funding



 Oct, 07 - 2014   Apprenticeships

The cost of taking on an Apprentice.

An apprentice could help you put your business in the spotlight with new talent, fresh skills and motivation, but many sole traders and small business are put off by the cost of taking on an apprentice, as well as the time commitment of supporting their training programme. Don’t fear! There is funding available and what you will potentially get back in terms of helping your business to grow should more than cover the cost.

 

Apprenticeship funding facts:

The level of funding that an employer receives towards an apprenticeship is dependent on a number of factors:

  • The age of the apprentice – (16-18 year olds are fully-funded by the government. For those 19 years + there is a 50 per cent contribution expected from the employer)
  • The size of the employer – a sole trader will not pay any additional contributions but an employer with more than 1000 employees will pay an additional 20 per cent of the training costs
  • Each apprenticeship programme attracts a different funding value from the government
  • Funding for individual apprentices varies according to their previous qualifications.

 

At the moment, apprenticeships are an even more viable option thanks to an ‘Apprenticeship Grant for Employers’ (AGE). This is available for 16-24 year olds (until the end of December 2014), and aims to support businesses who would otherwise not be able to take on an apprentice, and grow their business.

 

The National Apprenticeship Service will provide eligible employers with an AGE of an individual value of £1,500. Employers can be paid 10 grants in total during the lifetime of the initiative.

 

The scheme targets SME employers (those with less than 1000 employees), who are new to apprenticeships or haven’t enrolled a new recruit or existing employee onto an apprenticeship programme in the previous 12 months.

 

To find out if your business is eligible for AGE support, call the National Apprenticeship Service on: 0800 150 600 or click here for access to their online web enquiry form.

 

Whether subsidised by funding, or not, employers are required to pay apprentices at least the current minimum wage rate. Click here for the latest figures. If an apprentice is 19 or over and past their first year, they’re entitled to the worker rate for their age.

 

When it comes to time, by choosing one of our new apprenticeship schemes, you can be assured of support at every step of the way: from finding an apprentice and applying for funding, to getting your trainee through the key stages of their apprenticeship. Apprenticeships are currently available to building services engineering businesses based in Luton. Click here for details.