Apprenticeship training now enables new or existing staff to combine working with study to gain skills and knowledge in a specific job at any age.
Types of apprenticeships
Apprenticeship training is available in over 850 different frameworks or standards including:
- health care
- digital and creative
- construction
- rail infrastructure
- management
- business administration
Frameworks are being replaced by new employer-led 'standards' which will be fully in place by 2021.
Grants and funding
Between August 2020 and January 2021:
- a £3,000 government grant is available to any business that hires a new apprentice between the ages of 16 and 18
- a £2,000 government grant is available to any business that hires a new apprentice between the ages of 19-24
- while those that hire new apprentices aged 25 and over will be paid £1,500
Apprenticeship funding bands
Each framework and standard is placed in an apprenticeship funding band; for example:
- an advanced (Level 3) business admin apprenticeship standard costs up to £5,000
- a degree-level (Level 6) chartered management apprenticeship standard costs up to £27,000
How apprenticeship training is paid for
Who pays for apprenticeship training has also changed.
If you have an annual pay bill of:
- less than £3m and have less than 50 members of staff: the government covers all apprenticeship training costs if the apprentice is aged between 16 and 18 on the first day of their apprenticeship (or up to 24 for learners with learning difficulties/disabilities or is a care leaver)
- less than £3m: the government covers 95% of training costs, you cover 5%
- over £3m: you'll be a levy payer, where 0.5% of your annual pay bill is automatically placed into your online Apprenticeship Levy pot on a monthly basis by HMRC, topped up by 10% from the government. You access your apprenticeship training fund through the digital Apprenticeship Service.
The benefits of hiring an apprentice
- 76% improvement in productivity reported by employers with an established apprenticeship programme
- 75% of employers reported that apprenticeships improved the quality of their product or service
- 90% of apprentices stay on in their place of work after completing an apprenticeship
Source: www.apprenticeships.gov.uk/employer/benefits
Traineeships
Traineeships offer 16 to 24 year olds ‘pre-employment’ or ‘pre-apprenticeship’ training and work placements of between six weeks to six months. It also includes english, maths and employability qualifications delivered through a training provider. A Traineeship is not classified as a job, meaning employers are not required to pay trainees for their placements, but they may offer to cover transport and meal costs.
Employers will be given a £1,000 government grant per Traineeship position from September 2020.
York Apprenticeship Hub
Contact our Apprenticeship Hub if you're considering:
- hiring an apprentice
- using apprenticeship training for an existing member of staff
We offer a free, impartial service designed to support local businesses with apprenticeship:
- grants
- funding
- recruitment
- training
Download our Apprenticeship Guide for employers.