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Understanding Apprenticeship Funding

Apprenticeships can bring a wealth of benefits to your business.

An exciting option for both apprentice and employer, apprenticeships are available across different levels, for a range of different individuals from school leavers and university graduates to people who simply want to further their careers or change career direction.

As an employer, you’ll be eligible to receive funding from the government to help pay for your apprenticeship training and the good news is, it’s easier than you think!

This article will help you understand the benefits of diversifying your workforce, your estimated yearly financial gain, and other areas for cost savings as a direct result of hiring an apprentice.

How much does it cost to hire an apprentice?

Depending on the size of your business, you may be eligible for funding that covers between 95% and 100% of the apprentice training costs OR be able to use your apprenticeship levy.

Apprentice engineering team working

The cost of taking on an apprentice will depend on several factors:​

  • If you pay the government apprenticeship levy – a form of tax introduced to boost essential training and the development of apprenticeship programmes across the UK. Charged at 0.5% of an employer’s total payroll, only if the payroll exceeds £3 million.
  • Recruitment costs – the costs associated with finding the right person for your apprenticeship position. At the Early Talent Academy, we prioritise the development of transferable skills to ensure registered candidates are equipped with the skills, attitudes and experience necessary to hit the ground running. Find out more about our Apprenticeship Services.
  • Apprentice wages – how much you have to pay an apprentice will be dependent on their age, the level of their apprenticeship, the location of the position and the year of which they are in their apprenticeship training (this will only be applicable if the apprentice has transferred from another employer).
  • National Insurance – the same as any other position under your employment, you will be legally required to pay Employers National Insurance Contributions on employees’ salaries.

There are incentives available for the hiring of apprentices. With government grants and funds available to support the costs of apprenticeships, you can expect to be eligible for up to £1000 per apprentice if they’re aged between 16-18 or under 25 with an education, health and care plan.

At Early Talent Academy, we will support you through the process of hiring an apprentice. From working with you to understand the role and requirements, to effectively marketing the available apprenticeship and optimising your employer value proposition to reflect the needs of a student audience.

eta mentorship in office

Your estimated yearly gain

Top tip

“Did you know on average in the UK, the estimated yearly gain for employers is between £2,500 and £18,000 per apprentice during their training period?”

Apprentice outputs usually surpass their associated costs, delivering a huge and diverse range of benefits to employers during their training:

  • Reducing outsourced development services – 86% of employers said apprenticeships helped them develop skills relevant to their organisation
  • Updated technology and improved technology usage capabilities – 78% of employers said apprenticeships helped them improve productivity
  • Fresh perspectives and business ideas – 74% of employers said apprenticeships helped them improve the quality of their product or service
  • Improved loyalty and retention – fostering a sense of loyalty and commitment among apprentices who see the investment a business is making in their development

Hire an apprentice and invest in the future of your business

  • Offer on-the-job training in a safe working environment
  • Build a culture of learning and development
  • Enjoy higher staff retention and morale
  • Promote diversity and inclusion in the workplace

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