How Does Apprenticeship Funding Work?

Recently it was announced that the way apprenticeship funding works will be changing, coming into effect from spring 2017. This will involve some employers contributing to a new apprenticeship tax as well as changes to the funding for apprenticeship training.

In short, the new apprenticeship funding scheme will require all employers who have a pay bill over £3 million each year and are operating in the UK to invest in apprenticeships. These employers will need to pay 0.5% of their total bill, excluding the newly introduced £15,000 levy allowance each year. If you’re an employer that falls into this bracket, you will need to start paying from May 2017. You can read more about the latest apprenticeship funding scheme over on the Gov website.

Recruiting an apprenticeship is beneficial and cost-effective for businesses, offering young people a great opportunity to develop within their chosen industry. Many businesses start their apprentices on a fair, minimum wage, helping to support them at work in a skilled and reliable environment. This helps to increase staff morale and general work environments.

The salary for apprentices varies based on their age and level of apprenticeship they have enrolled on. For apprentices aged under 19 years, or for those over 19 and in their first year of their apprenticeship, the minimum yearly salary is £6,630. The minimum yearly salary for those who are over 19 years and who have completed the first year of their apprenticeship increases to £10,823 - £14,040.

After twelve months in apprenticeship employment, you are likely to be in a good situation to maintain the position you are in for years to come. However this highly depends on the work you have committed to throughout your time as an apprenticeship and the rapport you have with your employers.

There are a huge variety of benefits an apprentice can have on a business, for example they can contribute to keeping the business running smoothly, allowing the company to price services at a more competitive rate. Apprentices also allow other team members more time for key projects and accounts. To read more about the benefits of hiring an apprenticeship in your business, you can read our blog here.

Here at GET, we can help you if you’re looking to hire or train in an apprenticeship scheme. For more information, get in touch with a member of our friendly team by visiting our contact page or by giving us a call on 01452 423461.