The next step

To the training organisation search page

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To a fact sheet on the apprenticeship grant

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The financial advantages of taking on apprentices

Increased productivity

2013 research. The Centre for Economics and Business Research carried out a study focusing on the productivity impact of apprenticeships. It found that, in 2012/13, the average person completing an apprenticeship increases business productivity by an average of £214 per week, so over £11,000 per year. This varies by sector, e.g. it raises worker productivity by £414 in engineering and manufacturing and £114 in healthcare, public services and care.

Increased profits. It’s likely that a proportion of these productivity gains will be passed on to the worker as higher wages once they’ve completed their apprenticeship, but the remainder should have a positive impact on the business’s bottom line. Taking on an apprentice has other financial advantages as well.

Up to 100% of training costs covered

Rather than your company having to fork out to send an apprentice on training courses, government funding is available. The amount depends on the job role and the age of the apprentice:

• 16-18 years, 100% of training costs
• 19-23 years, 50% of training costs
• 24 years or over, a contribution of up to 40% of training costs.

How does it work? To receive the funding, the apprentice will need to be trained by an apprenticeship training organisation.

Tip. There’s a useful search facility on the National Apprenticeship Service’s website - just enter the apprentice’s role, e.g. assistant accountant, and your postcode and it will provide you with a list of local training organisations together with their success rates (see The next step ).

£1,500 grant for 16 to 24 year olds

An AGE 16 to 24 Grant for Employers , a grant for employers of 16-to-24-year-old apprentices of £1,500 could also be available to your company. In fact, you can receive up to ten grants until they cease to be available after 31 December 2014. This equates to about 16 weeks’ pay for an apprentice working 35 hours a week on the minimum wage.

Are you eligible? There are a number of eligibility criteria (see The next step ). The main ones are that your company must have fewer than 1,000 employees and not have taken on an apprentice in the twelve months before the start date of the first apprentice you are applying for.

Tip. You don’t have to wait twelve months between the first and any subsequent applications.

Lower minimum wage

Another advantage of taking on an apprentice is that you can pay them at a lower minimum wage.

Currently, for apprentices aged under 19 or in their first year of their apprenticeship, the rate is just £2.68 per hour compared with the £6.31 standard rate for workers aged 21 and above.

For the training organisation search page and a fact sheet on the apprenticeship grant, visit http://tipsandadvice-financialcontroller.co.uk/download (FC 06.10.09).