Apprenticeship funding under review

Employers could gain the power to control funding for apprenticeship training, the Department for Business, Innovation and Skills (BIS) has announced.

The plan is designed to help firms choose the training that suits the skills their business needs.

The government outlined the plans in response to a consultation on the future of apprenticeships. The document states that giving employers the power to control apprenticeship funding is a “non-negotiable” part of the government’s reforms.

However, BIS concluded that more research needs to be done into how this funding mechanism would work in practice.

Neil Carberry, director for employment and skills at the Confederation of British Industry, described the decision as a “positive step” but said that more clarity was needed.

Mike Cherry, national policy chairman of the Federation of Small Businesses, said:

“By making schemes employer-led they will be more likely to attract small and micro businesses, which may not have had an apprentice before. But, this will only work if these businesses feel they have adequate support to do so.”

Apprenticeship funding eligibility

Businesses can apply for government funding if they provide apprentices with formal study as well as being an employer.

The amount  available depends on the age of the apprentice:

  • 16 to 18 : all course costs up to advanced level apprenticeship qualifications
  • 19 to 24: half the course costs
  • 25 or over: a contribution.

Small businesses can get an apprenticeship grant worth £1,500 for up to 5 apprentices. Businesses are eligible if:

  • they employ 50 people or less; and
  • the apprentice is between 16-24 years-old.

Contact us on 0161 832 4451 for advice on employing an apprentice.