Understanding apprenticeship funding is crucial for employers looking to invest in new talent. By hiring an apprentice, you can not only access financial support but also enjoy a range of benefits for your business.
Funding Options
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Apprenticeship Levy: If your business has an annual pay bill of over £3 million, you will need to pay the Apprenticeship Levy, which is 0.5% of your pay bill. This amount goes into a digital account that you can use to pay for apprenticeship training and assessment.
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Government Co-Funding: For businesses that do not pay the Levy, the government offers co-funding. You’ll typically pay just 5% of the training costs, while the government covers the remaining 95%. This makes it easier for smaller employers to take advantage of the apprenticeship model.
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Incentive Payments: There are often government incentive payments available for employers who hire apprentices. These can help offset some of the costs of bringing in new talent.
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Working with Training Providers: Partnering with an approved training provider like us at SS&L will help you navigate the funding process and ensure that your apprenticeship programme meets all necessary requirements.
Benefits of Hiring Apprentices
Investing in apprentices not only supports your business financially but also brings significant advantages:
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On-the-Job Training: Apprentices receive valuable training in a safe working environment, helping them develop the skills needed for your specific industry.
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Building a Learning Culture: Hiring apprentices fosters a culture of continuous learning and development, enhancing overall employee engagement.
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Higher Retention and Morale: Companies that employ apprentices often see higher staff retention rates and improved morale among their teams.
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Promoting Diversity and Inclusion: Apprenticeships help create a more diverse and inclusive workplace, benefiting everyone in the organisation.
If you have any questions about apprenticeship funding or how to get started, don’t hesitate to get in touch with us!
Did You Know…
On average, UK employers see a yearly gain of between £2,500 and £18,000 per apprentice during their training period. The contributions from apprentices often exceed their costs, providing a net benefit that can grow even more once their training is complete.
