Apprenticeship programmes have become even more attractive for small-and-medium-sized businesses. Find out how changes to apprenticeship funding for SMEs has reduced, making it more attractive than ever to hire an apprentice.
It was back in October when Philip Hammond announced the plan to change the funding. It was a major part of the “£695million package to support apprenticeships”. And now the plan is well underway.
‘Greater affordability and return’ has been added to the list of reasons for SMEs to choose apprenticeship programmes.
So what’s new for SMEs?
Well, the fee for small businesses taking on apprentices was 10%.
It’s now 5%, an impressive 50% saving for SMEs moving forward.
Small businesses were covering 10% of the apprentice training cost before now. But from April 2019, SMEs only need to pay a 5% fee. In practice, it means that an apprenticeship that costs £12,000 would now cost the employer £600 – the government would then cover the remaining £11,400. The change makes it more affordable for them to invest in their workforce to support business growth.
The government will continue to fund the rest of the cost, now 95%. They have labelled this as a ‘co-investment’ between the company and government. And the funding is designed to cover apprenticeship training and assessment costs.
Note: Apprenticeships starting before April 2019 continue at the previous rate of 10%.
Do I qualify for apprenticeship funding?
Nothing has changed with qualification criteria. As before, you must have an annual wage bill of less than £3million to qualify for the co-investment..
Apprenticeship training and opportunities are delivered with a blend of online, webinar and face-to-face training so to fit flexibly around an employee’s work schedule. You’ll find apprenticeships covering Business Administration, Textile Care Operations, Digital Marketing and more.
Note: Remember that apprenticeship programmes are for both new employees AND existing employees, and range in age and experience, from school-leavers to undergraduates.
Why choose an apprenticeship?
Well, it’s now even more affordable for small businesses to invest in their people. It has unlocked a new opportunity to help drive small businesses forward. There are many other great benefits too, including:
- Improving employee satisfaction through investing in their development
- Reducing costs in recruitment and training
- Increasing the productivity of your workforce
- Up-skilling your workforce
- Improving customer service and experiences
- Increasing turnover and return on investment
How to get involved
Are you thinking about hiring an apprentice or upskilling your staff? Apprenticeships are proving to be an even more affordable, effective and rewarding solution.
Discover how NTG Training can help you move your business forward through our apprenticeship programmes. Browse our range of apprenticeships or call today on 01244 678 100.