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.
Available Government Funding for Apprenticeships
Government funding for Apprenticeships entitles businesses to up to 100% of training costs. Currently, in England, the level of funding is related to the age of the Apprentice:
16 – 18 years old – training 100% funded
19 + years old – partially funded
The Apprenticeship Grant for Employers
You may be eligible to apply for The Apprenticeship Grant for Employers. This grant is subject to regional variances and eligibility. It is £1,500 per Apprentice and you can claim it for up to 5 Apprentices. It is only applicable to new Apprentices between the ages of 16-24 working to an approved Apprenticeship framework. If you would like to discuss this further, you can call us on 0800 783 2545.
Apprenticeship Wages – Rates of Pay
As of October 1st 2016 the National Minimum Wage for Apprentices is £3.40
The information below is intended as a guide only and it based on working 37.5 hours per week. It provides a useful comparison for businesses considering employing Apprentices:
The minimum Apprenticeship wage: £6,435
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: £3.40 per hour
The rate for 16 - 17 years old: £4.00 per hour
The rate for 18 - 20 years old: £5.55 per hour
The rate for 21 - 24 years old: £6.95 per hour
The rate for 25’s and over: £7.20 per hour
These rates are applicable as of October 1st 2016
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
The government is making changes to funding for Apprenticeships in England. This is designed to increase the quantity and quality of Apprenticeships and will give more control to employers. The Apprenticeship Levy is set to come into effect on April 6th 2017 and will be 0.5% of a company payroll. It is only applicable to employers with a payroll in excess of £3million per annum.
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.