Smaller businesses that are looking to take on an apprentice will receive a financial boost this month as their contribution towards apprenticeship training has been halved.
Non levy-paying Businesses (those that have a wage bill of less than £3m per year), can now access extra funding for apprenticeship training and assessment through the shared government-employer co-investment scheme.
Currently, the co-investment split is 90/10 meaning the government pays 90% of the contribution and employers make a 10% contribution, up to the maximum amount of training funding set for the apprenticeship being delivered.
From today apprenticeship contributions from the government will go up to 95%, meaning non levy-paying organisations will now only pay a 5% contribution to fund their apprenticeship programme.
If the cost of your chosen Apprenticeship Standard was £11,000, for example, the Digital Marketer Apprenticeship Standard Level 3, which is delivered over 13 months, then under these new terms the Government would pay £10,450, while the employer’s contribution would only be £550.
So what does that mean for a small business?
Taking on apprentice is now even more accessible. From today to employ and train an apprentice the investment will include a 5% co-investment fee, plus the apprentice’s wage.
And evidence shows that apprentices are a great benefit to businesses:
- The average Apprenticeship completer increases business productivity by £214 per week*
96% of employers with apprenticeships say their business has benefited *
- 83% of employers who have apprenticeships rely on them to provide the skilled workers needed for the future *
- 80% of employers with apprenticeships say they reduce staff turnover *
- 76% of employers with apprenticeships say they increase overall productivity *
- 75% employers report that apprenticeships improved the quality of their product or service #
- The majority of SMEs said that having apprenticeships allowed them to attract good quality staff and that it brought new ideas to the organisation~
*CEBR The Benefits of Apprenticeships to Business, 2015
#Government Apprenticeship key facts 2017
~IFFR Kantar SME research 2017
Who can do an apprenticeship?
- Anyone aged over 16
- Graduates and non-graduates
- New or existing staff
Apprenticeships are a great investment. You can ensure you get the right staff for your business needs, now and in the future, and give them an opportunity to learn the skills needed for their role, on-the-job with support from your business and an external training partner. They can bring the newest ideas and innovations into a company and can help generate an extremely loyal workforce.
If you have existing staff, you would like to put forward we can help them get started.
At Remit Training, we offer a free Apprentice Recruitment package as part of our service to clients. We can advertise, shortlist, screen and support the interview process to help make the recruitment of the right apprentice for your business as easy as possible
Is there any additional help with funding?
Employers who do not pay the levy are also eligible for additional funding and support, depending on your apprentice’s age and circumstances or if you are a business that employs fewer than 50 employees.
There are still grants of £1000 available to support the employment and training of 16-18 year olds or apprentices with an EHC plan.
In addition, don’t forget that businesses are exempt from paying the employer National Insurance contribution for apprentices aged 25 and under.
So what do you do next to explore how an apprentice can help boost your business?
Get in touch with Remit Training and we’ll get to understand what your business needs and work with you to identify how taking on an apprentice might benefit your business.
We offer apprenticeships across a range of sectors including automotive, IT, digital marketing, business, leadership and management, hospitality, health and social care, food manufacturing and retail.