Apprenticeships

/Apprenticeships
Apprenticeships2018-10-14T12:49:48+00:00

Grow your business with an Apprenticeship

Over 130,000 businesses across the UK offer Apprenticeship places because they recognise their effectiveness at increasing productivity, improving business performance and ensuring a committed and competent workforce.

Recruiting apprentices enables employers to fill the skills gaps that exist within their current workforce as apprentices begin to learn sector specific skills from day one; developing specialist knowledge that will positively affect your bottom line.

In addition to eager, motivated staff who are committed to on the job training and development, industry research has highlighted numerous direct and indirect benefits of Apprenticeships for both recruiting new apprentices and for training your workforce.

  • 80% of companies who invest in apprentices have reported a significant increase in employee retention
  • 77% of employers believe Apprenticeships make them more competitive
  • 76% of those employers who employ apprentices agree they make their workplace more productive
  • 81% of consumers favour using a company which takes on apprentices
  • Employers who take on a 16-18 year old apprentice only pay their salary. The Government will fund their training
  • 92% of employers who employ apprentices believe that Apprenticeships lead to a more motivated and satisfied workforce.
  • 83% of employers who employ apprentices rely on their Apprenticeship programme to provide the skilled workers that they need for the future
  • Apprenticeship programmes allow training to take part at the workforce with little disruption to business operations
  • In terms of return on investment linked to Apprenticeships, 41% say that their apprentices make a valuable contribution to the business during their training period, while a further third (33%) report that apprentices add value within their first few weeks or even from day one
  • 57% report a high proportion of their apprentices going on to management positions within the company

* Data compiled by the National Apprenticeship Service

Apprenticeship Levy

Was first announced by the Chancellor George Osborne in the November 2015 Budget, the Apprenticeship Levy aims to fund 3 million apprenticeships in the UK by 2020. It affects all organisations above a certain size, committing them to either taking on apprentices or paying a percentage fee of their PAYE wage bill.

Does the Apprenticeship Levy affect my organisation? If your payroll comes to over £3m a year, the answer is yes.

What will it cost?
The levy will be 0.5% of your PAYE bill however there is an allowance of £15,000

What does it mean in practice?
Employer of 250 employees, each with a gross salary of £20,000

Paybill: 250 x £20,000 = £5,000,000

Levy sum: 0.5% x £5,000,000 = £25,000

Allowance: £25,000 – £15,000 = £10,000

What is the aim of it?
While some are calling it a tax on business, the main aim is to persuade you to take on more apprentices. They can be from outside your organisation, but you can also retrain current employees to take the next step on their career ladder, or to change direction.

When does it come into force?
To allow businesses and other organisations to plan ahead, the Levy only takes effect in April 2017.

Does it affect Public Sector organisations as well as businesses?
Yes, the Apprenticeship Levy will affect the public sector in the same way as the private sector. But all public sector organisations will be required to make sure that 2.3% of their workforce are apprentices at any one time.

Apprenticeship News

National Living Wage
The introduction of the National Living Wage from April 2016 will mean a 7.5% increase in hourly pay for someone aged 25 or over on the National Minimum Wage. This means that apprentices aged 25 and over will be entitled to at least £7.83 per hours.

Institute for Apprenticeships
A new independent body, led by employers, will be fully operational by April 2017 to support the quality of apprenticeship standards in England. It will be responsible for setting quality criteria for the development of apprenticeship standards and assessment plans; reviewing, approving or rejecting them; determining the maximum level of Government funding available for standards; and quality assuring some end point assessments.

Apprentice National Minimum Wage (NMW)
The minimum wage for apprentices is: –

25 & over       = £7.83 per hour
21 – 24            = £7.38 per hour
18 – 20           = £5.90 per hour
17 – 18            = £4.20 per hour
The apprentice rate of the NMW, which applies to apprentices aged under 19 or those aged 19 or over and in the first year of their apprenticeship, has increased from April 2018 to £3.70 per hour.

Degree Apprenticeships
Employers and Universities are involved in co-designing apprenticeships to meet full occupational competency where the apprentice completes a degree (bachelor’s or master’s) as part of their apprenticeship. These apprenticeships give people the opportunity to attain a degree from some of the best universities whilst training in a top flight career. Degree Apprenticeships are already live in sectors such as Automotive, Banking, Digital Industries, Chartered Surveying, Aerospace and the Nuclear Industry.

Announced 24 March 2017
10 million fund to boost the number of degree apprenticeships available, providing more opportunities for young people to fulfil their potential.

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