A great return on investment
According to the Department for Business Innovation and Skills, Employer Investment in Apprenticeships and Workplace Learning: The Fifth Net Benefits of Training to Employers Study the cost of Apprenticeship training pays for itself within a couple of years of completion, through increased productivity. More than that, apprentices recognise and appreciate your commitment to their career and progression, contributing to a positive working environment.
Funding available for Apprenticeships
Funding available, depends on whether your organisation pays the Apprenticeship Levy
For more information click on this link
If you are a levy paying employer you can use your Levy account to pay for Apprenticeship programmes.
If you are not a Levy paying employer, Government will pay 90% of the cost of training for any Apprenticeships.
Both Levy paying and non-Levy paying employers will be entitled to £1,000 incentive per Apprentice aged 16-18* provided they are retained on programme.
If you are an employer with fewer than 50 employees, Government will pay the full cost of training Apprentices aged 16-18*
*Also applies to 19 -24 year olds who have an education, health or care plan or who have been in the care of the local authority.
Apprenticeship Wages – Rates of Pay
As of April 1st 2017 the National Minimum Wage for Apprentices is £3.50
The information below is intended as a guide only and it based on working 36.5 hours per week. It provides a useful comparison for businesses considering employing Apprentices:
The minimum Apprenticeship wage: £6,643
A typical Apprenticeship wage: £8,000 - £13,000
A typical higher Apprenticeship wage: £11,000 - £18,000
The average IT graduate starting wage: £24,000
National Minimum Wage:
The apprentice rate: £3.50 per hour
The rate for 16 - 17 years old: £4.05 per hour
The rate for 18 - 20 years old: £5.60 per hour
The rate for 21 - 24 years old: £7.05 per hour
The rate for 25’s and over: £7.50 per hour
These rates are applicable as of April 1st 2017
Apprentices are entitled to the minimum wage for their age if they are 19 or over and have completed the 1st year of their Apprenticeship.
Changes to Funding – The Apprenticeship Levy
In April 2017 the government made changes to funding for Apprenticeships in England. This was designed to increase the quantity and quality of Apprenticeships and to allow more control to employers. The Apprenticeship Levy means that employers operating in the UK with an annual payroll of over £3 million are required to pay a levy of 0.5% of the funding available for apprenticeships.
You can call us on 0800 783 2545 to discuss any questions you might have about the Apprenticeship Levy. We can also advise you on how to effectively plan for these changes in order to achieve the greatest benefit to your business.