Why taking on an apprentice doesn't have to break the bank

“Businesses that offer Apprenticeship programmes

view them as beneficial to their long-term development.

Most businesses (82 per cent) employed an apprentice to

build the skills capacity within their businesses.”

(Source: 2011 British Chambers of Commerce Research)

Are you still unsure about taking on an apprentice?

One of the more common reasons why employers are doubtful about taking on apprentices is to do with finance. They will often say:

• “I cannot afford to bring in somebody new”
• “I cannot afford the training”
• “I cannot afford to pay the wages”

All of these are very valid concerns, but employers should be assured that this has been taken into account. Funding is available towards the costs of an Apprenticeship, easing the financial burden that employers face in relation to recruitment.

What funding is available to an employer towards training costs?

The size of the contribution varies depending on your sector and the age of the apprentice at the start of the training:

• If the apprentice is aged 16–18 years old, you will receive 100 per cent of the cost of the training
• If they are 19–24 years old, you will receive up to 50 per cent of the cost of the training
• If they are 25 years old or over, you may receive a contribution of up to 40 per cent of the cost of the training.

For you as the employer, all you would need to pay would be the apprentice’s wages. The Apprenticeship minimum wage is currently £2.65 per hour. This is quite low, but the level of training and experience that the apprentice will receive must be taken into consideration: he or she will be building great opportunities for the future.

It is also possible to apply for a grant to help reduce the company costs that can occur from taking on new staff. The Apprenticeship Grant for Employers (or AGE) is a grant of £1500 that is offered to support the recruitment of apprentices. This sum is available for each apprentice, for up to a maximum of 10 apprentices per employer.

• To find out more about funding for Apprenticeships, please phone City Apprenticeships on 01273 667771, or e-mail cityapprenticeships@ccb.ac.uk
• For more information on AGE 16 to 24, please visit the Apprenticeships website: www.apprenticeships.org.uk/AGE 
• For general information on Apprenticeships, please phone the National Apprenticeship Service on 08000 150 600 to speak to an adviser.

Dean Elliston

City Skills & Jobs

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