Government money is available to support businesses employing apprentices.
The level of funding depends on the age group employed, the Apprenticeship level being delivered and the Apprenticeship framework.
- Midlands Apprenticeships can access government funding for the delivery of Apprenticeships
- The funding available for a 16-18 year old means the delivery is free of charge to the employer
- The funding available for a 19-23 year old assumes that the employer will make a 50% contribution to the cost of delivery
- There is a further reduction in funding for someone 24 and over and therefore a greater assumed employer contribution
- For companies with more than 1,000 employees there is a further reduction in the funding of 25% for anyone 19 or over
- These funding reductions for 19+ mean that there may need to be an employer contribution. This will depend on the level and qualification framework
- To support companies that would not usually be in a position to recruit people aged 16-24 through an Apprenticeship scheme, The National Apprenticeship Service will pay a £1,500 grant to eligible companies. The Apprenticeship Grant for Employers (AGE) is available for businesses employing less than 50 staff who haven’t already recruited an apprentice in the last 12 months.
Apprentice funding eligibility
Apprenticeship funding is available for individuals who meet the following criteria:
- Have been a UK or EEA resident for three years before the start of their Apprenticeship
- Are employed for a minimum of 30 hours per week
- Are at least school leaving age
- Do not have a Level 4 qualification or higher
- Have a contract of employment for a minimum of 12 months
- Are not in full-time education
- Employers who take on an apprentice may be eligible for wage incentives of up to £2,275 each.
- Wage incentives are available for companies who take on an 18-24 year old who has claimed benefits through Jobcentre Plus for at least six months.
- Wage incentives are mainly available to organisations within the private, voluntary and community sectors, as well as social enterprises.
- Central government departments, their executive agencies and Non-Departmental Public Bodies (NDPBs) are unable to claim wage incentives.
Walsall Works initiative
The Walsall Works initiative, run by Walsall Council, aims to increase the number of young people in employment in the area. The initiative is encouraging micro, small and medium sized businesses to take on apprentices in these special growth areas:
- Niche and high value manufacturing and engineering
- Building and environmental technologies
- Financial, professional and business services
- Creative and digital services
- Health and social care
On taking on an apprentice, employers will receive incentive payments:
- 16 or 17 year old at £3.00 per hour: £3,000 incentive
- 18 to 20 year old at £4.98 per hour: £4,500 incentive
- 21 to 24 year old at £6.19 per hour: £6,000 incentive
Employers must meet the following criteria:
- Offer apprentices a minimum employment contract of 35 hours per week for at least 12 months.
- Pay at least the agreed minimum hourly rates.
- Employ the apprentice for the full duration of the apprenticeship (from one to four years).
- Those eligible for the AGE grant will have their incentive payment reduced by £1,500.
Please get in touch with our commercial team for more details on funding options.