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Apprenticeships for Small Employers in England


Ashored | Apprenticeships for Small Employers in England

Introduction Apprenticeships are jobs that combine work, on-the-job training and formal study towards a work-based qualification. Employers who take on an apprentice receive government funding to help with the cost of training and assessment and are also eligible for incentive payments.

Apprenticeships in England are available at four levels, (intermediate, advanced, higher and degree) and usually take between one and five years to complete. Apprentices must be aged 16 or over and can be new or current employees.

Here we summarise the benefits of taking on an apprentice and outlines how the apprenticeship system operates in England. We explain apprenticeship funding for small employers, as well as the different apprenticeships that are available, how to hire an apprentice and employers' responsibilities towards apprentices.


Benefits of taking on apprentices According to research published by the Department for Education, the benefits of apprenticeships include the following:

  • 86% of employers who take on apprentices report that it has helped them develop skills relevant to their business.

  • 78% report improved productivity.

  • 74% report improvements in the quality of their product or service.

  • 69% report improved staff retention.

  • 25% of consumers are willing to pay more for products from a business that employs apprentices.


Apprenticeship funding Small employers (ie those with an annual wage bill that is under £3 million) receive apprenticeship funding through a system known as co-investment. When they take on an apprentice, the Government pays 95% of the training and assessment costs directly to the training provider. The employer must usually pay the remaining 5% themselves. However, if the employer has fewer than 50 employees, the Government will pay 100% of the training and assessment costs of each apprentice who is:

  • Aged between 16 and 18 when the apprenticeship begins.

  • Aged between 19 and 24 when the apprenticeship begins, and either has special educational needs or has been in local authority care.

Employers whose annual wage bill is over £3 million must contribute to the Apprenticeship Levy and receive funding for training and assessing their apprentices through the Levy system.

All employers, regardless of size, can also claim an 'incentive payment' of up to £2,000 per apprentice, provided that the apprentice is a new employee.

Choosing an apprenticeship Since August 2020, all new apprenticeships have been based on 'apprenticeship standards'. There are more than 700 different apprenticeship standards for employers to choose from when deciding what skills and training would be appropriate for their business.

Each standard sets out the job role that the apprenticeship is suitable for and the skills that will be taught, as well as information such as:

  • The level and duration of the apprenticeship.

  • Entry requirements.

  • Assessment methods.

  • The qualification that successful apprentices will receive, and whether it leads to a professional registration.

Apprenticeship standards are developed and managed by the Institute for Apprenticeships and Technical Education, which provides a searchable directory of standards.


Hiring an apprentice Registering with the Apprenticeship Service Since January 2020, small employers have been able to use the Education and Skills Funding Agency's online Apprenticeship Service to find a training provider, access funding, advertise vacancies and manage their relationship with training providers. From October 2021, all new apprenticeship starts must be managed through this online service.

Choosing a training provider In addition to delivering courses for apprentices, training providers typically work closely with employers to help them determine the precise job role and training that they require. They also assist with advertising and recruitment, and help employers ensure that that their workplace offers suitable on-the-job training and experience for the apprentice.

It is therefore important for employers to research training providers carefully in order to find one that will meet their needs. A searchable directory of apprenticeship training courses and registered training providers is published by the Education and Skills Funding Agency.

Advertising and recruitment Apprenticeship vacancies are advertised in the 'find an apprenticeship' directory. Typically, training providers arrange this on the employer's behalf.

To increase the number of applicants, some employers also hold open days, arrange visits to schools and colleges, use social media and participate in careers events.

Employers can manage the recruitment process themselves or ask the training provider to screen candidates and select a shortlist for the employer to interview.


Employers' responsibilities Employers who take on an apprentice must:

  • Give them a job role that enables them to gain the knowledge, skills and behaviours they need to achieve their apprenticeship.

  • Allow them to combine learning in the workplace with formal off-the-job training. At least 20% of an apprentice's normal working hours must be used for off-the-job training.

  • Employ them for enough hours each week to undertake the training they need to achieve their apprenticeship, typically at least 30 hours.

  • Give them a contract of employment that is at least long enough to allow them to complete their apprenticeship successfully.

  • Pay them at least the appropriate National Minimum Wage rate for the hours they are in work and for the hours they are in off-the-job training. The rate varies according to the age of the apprentice.

When taking on an apprentice, employers must enter into the following agreements:

  • Apprenticeship agreement: This is an agreement between the employer and the apprentice. It gives details of the trade or occupation that the apprentice is being trained for, the name of the apprenticeship they're working towards, its start and end dates, and the amount of training that the employer will provide.

  • Commitment statement: This is an agreement between the employer, the training provider and the apprentice. It gives details of the planned content and schedule of the training, the responsibilities of each party, and the process for resolving complaints and queries.

Contact Ashored for more information about apprenticeship agreements and commitment statement.

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