Apprenticeship cap for small businesses to be scrapped as of Monday 3rd of April
In January 2020, a cap on apprentices was introduced; limiting small businesses to only three new apprenticeship starts before it was then lifted to 10 apprenticeship starts in the summer of 2020. As of Thursday 30th March, it has been announced that this cap has now been scrapped by the Skills Minister.
In a letter to the sector, Robert Halfon confirmed that small businesses that don’t pay the apprenticeship levy will no longer be limited under the apprenticeship cap to a maximum of 10 apprenticeship starts, as of Monday 3rd April 2023.
The cap has been a point of controversy within the sector; causing employers of small businesses to turn away new starts because of it. This has caused issues each year for businesses who wish to take on more apprentices. businesses who hit the cap have had to go down the path of requesting levy transfers from larger employers in order to fund more than 10 apprentice starts.
The removal of this cap on businesses will allow these businesses to recruit as many quality apprentices as their business requires, give certainty to small employers over funding and ensure that these businesses have access to the apprenticeships they need to meet their goals and ambitions, fill skills gaps and grow their businesses.
Paragon Skills are delighted by this news as this will give smaller businesses the opportunity to establish a place of learning in their workplace; hiring new apprentices to help grow and push their business forward whilst bringing in new ideas and filling skills gaps among their team.
To find out whether hiring an apprentice is right for your business, read our blog on the benefits of hiring an apprentice.
For more information about the apprenticeship incentives and how to hire apprentices for your company, get in touch with us today.