Our recent ultimate checklist to recruiting an apprentice gave you all you need to know to ensure your journey from advertising to interviewing to hiring an apprentice goes smoothly. But we are often asked ‘will my business get any incentives for taking on an apprentice?’ In short, the answer is a resounding ‘yes!’ Read more about incentives for employees when taking on an apprentice below.
- Apprenticeships are affordable
Employing an apprentice is affordable, even for most small to medium businesses (SMEs). Although we would recommend paying your apprentice a fair wage, this does not have to be in line with what you would pay a conventional employee. You would also be earning your business a highly enthusiastic member of staff who is eager to learn and impress; their apprenticeship being a stepping stone to them hopefully securing future employment.
- Financial Incentives
A major incentive for taking on an apprentice is a wage incentive. This comes in the form of an Apprenticeship Grant for Employers (AGE) and all small and medium businesses with a staff roster of under 50 employees are entitled.
The Apprentice Grant is worth £1,500, if the apprentice is your first or your first in the last 12 months. This funding is provided by the government’s Skills Funding Agency, although in certain areas of the country, local authorities have taken responsibility and may pay a different amount depending on local resources.
This is the case for employers in:
- Greater Manchester
- Sheffield City Region
- West Yorkshire Combined Authority
- The West of England
- Liverpool City Region
- Tees Valley
- Cambridgeshire and Peterborough
As a further incentive, all apprenticeship grants are exempt from VAT.
- Your apprentice’s training will be paid for
From a financial perspective, you’ll only be responsible for paying the salary of your apprentice. This should be in line with the minimum wage as a bare minimum (starting with £3.40 between 16-18), and is age dependent from the age of 19 and upwards. For a full breakdown of age-related wage costs please see our blog on How to recruit an apprentice.
As an employer of an apprentice, you’ll receive a further incentive in terms of funding for your apprentice’s training.
Baltic Training will look after the training programmes and funding for these. We will work directly with the Skills Funding Agency, dealing with all the paperwork and ensuring everything is paid on time so your apprentice can complete their training without distraction and your own workload is not added to.
Recruit an apprentice with Baltic Training
If you’re ready to recruit an apprentice or simply have any further questions, don’t hesitate to get in touch! Visit our FAQs, see what our happy clients say with our employer case studies, call us on 01325 731 050 or fill out the form below.
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