For apprentices aged 19 years and over the Government will now only fund apprenticeships at 90%, instead of the 100% that they were previously doing. The employer is now expected to contribute the remaining 10% to their apprentice’s qualification. For example, if the full cost of a business administration qualification is £2,000, the employer will make a 10% contribution of £200. And, for these older apprentices the financial incentive from the Government of £1,500 does not apply.
For apprentices aged 16 to 18 years there is no change to the funding. The Government will still fund the apprenticeship at 100%, and if you take on someone in this age bracket, and your business has less than 50 registered employees, you will also receive £1,500 from the Government in the form of a financial incentive.
Payroll Masters Partner, Prosper Chidzomba commented “We have apprentices at Payroll Masters and whilst at first you may think it is more cost effective to take on apprentices who are 16 to 18, there are many benefits to employing more mature apprentices. In our experience we have found older apprentices settle in and are more productive in a shorter time frame because they are used to the world of work. Of course, youngsters need to learn the ropes too so a good mix of apprentices of different ages may be a good policy.”