Hiring an apprentice

Apprenticeship training enables new or existing staff to combine working with study, to gain skills and knowledge in a specific job at any age.

The benefits of hiring an apprentice
Types of apprenticeships
How apprenticeship training is paid for
Support with apprenticeship costs
Levy transfers
York Apprenticeship Hub

The benefits of hiring an apprentice

Hiring an apprentice is a productive and effective way for any business to grow talent and develop a motivated, skilled and qualified workforce.

According to information from GOV.UK:

92% of companies that have taken on apprentices believe this leads to a more motivated and satisfied workforce
86% said apprenticeships helped them develop skills relevant to their organisation
80% have seen a significant increase in employee retention

Top of page

Types of apprenticeships

Apprenticeship training courses are called Apprenticeship Standards.

There are around 700 Apprenticeship Standards available, some of which go up to degree or master's degree level, covering most employment sectors such as:

business and administration
construction
digital
engineering and manufacturing
legal, finance and accounting
rail
sales, marketing and procurement
transport and logistics

To search for an apprenticeship standard, visit the Institute for Apprenticeships website.

Top of page

How apprenticeship training is paid for

Each apprenticeship standard has a maximum associated cost, for example:

an advanced (Level 3) business admin Apprenticeship Standard costs up to £5,000
a degree-level (Level 6) chartered manager Apprenticeship Standard costs up to £22,000

This is paid in monthly instalments to the training provider through the Apprenticeship Service Account (ASA). However, you can get money to go towards the cost of training and assessment. The amount you get depends on whether you pay the Apprenticeship Levy or not.

If your annual pay bill is less than £3 million, you are likely to be a ‘non-levy paying business’, where the government funds 95% of training and assessment costs (up to the funding band maximum), and you cover 5%.

However, if one or more of the following statements is also true, the government funds 100% of the training and assessment costs:

The apprentice is aged between 16 and 21 years old on the first day of their apprenticeship (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
The apprentice is aged between 22 and 24 years old on the first day of their apprenticeship and;
- has either an Education, Health and Care Plan provided by their local authority and/or;
- has been in the care of their local authority, and;
- you have fewer than 50 members of staff

If you have an annual pay bill of over £3 million, you'll be a levy payer, where 0.5% of your annual pay bill is automatically placed into your online Apprenticeship Levy pot on a monthly basis by HMRC, topped up by 10% from the government. This is used to fund apprenticeship training and assessment costs for new or existing staff. You access your apprenticeship training fund through the Apprenticeship Service Account. See guidance on how to register and use the apprenticeship service as an employer.

Other associated costs

You are responsible for costs relating to the apprenticeship, such as:

wages
licences to practise
equipment
travel and subsidiary costs

Top of page

Support with apprenticeship costs

A £1,000 government grant is available for any employer who hires a new apprentice who is:

aged 16 to 18, or;
aged 19 to 24 and has previously been in care, or;
aged 19 to 24 and has an Education, Health and Care Plan

You can spend the grant on any costs associated with supporting an apprentice in the workplace, for example:

uniforms
your apprentice’s travel
your apprentice’s salary

You receive the payment in 2 instalments from the training provider.

Top of page

Levy transfers

Levy paying employers can now transfer up to 50% of their unallocated apprenticeship levy funds to employers who are non-levy payers (or levy payers who have spent their levy) and want to hire new apprentices or develop existing employees.

Transferred funds are used to cover 100% of the approved apprenticeship training and assessment costs for the duration of the apprenticeship.

As a levy paying employer, City of York Council is keen to support local businesses by transferring unallocated apprenticeship levy funds to Small and Medium Enterprises (SMEs), Public Sector, and Voluntary, Community and Social Enterprises (VCSE).

Any York-based employer who is interested in receiving or sending levy funds should contact the Apprenticeship Hub.

Top of page