Cost of hiring an apprentice
Wages
Employers pay the apprentice's wages. This includes the time they are in work and the time spent completing 'off the job' training, including holiday pay of at least 20 days per year plus bank holidays. Apprentices usually work full time, but they can also work part time.
There is a national minimum wage for apprentices, which is updated every April and is currently £8 per hour. This applies to:
- New apprentices aged 16-18.
- New apprentices aged 19 or over in the first year of their apprenticeship.
Apprentices who have completed their first year and are aged 19 or over are entitled to the national minimum wage for their age.
If a current member of staff is put onto an apprenticeship, they are entitled to the same wage they were on before, regardless of age.
Many organisations choose to pay their apprentices a salary higher than the national minimum wage to reflect their value to the business.
Training costs
Each apprenticeship standard is allocated to one of 30 funding bands, ranging from £1500 to £27,000. The funding band is what the total cost of the apprenticeship training will be. You can find the funding band information under each standard on the Skills England apprenticeships search.
The Government helps to pay the costs of the apprenticeship training - this is called co-investment. The amount depends on the size of the business and the age of your apprentice, but as a a small (non-levy paying) business this would be a maximum of 5% of the funding band cost. If you hire a 16-21 year old apprentice, the Government will fund 100% of the training costs if your company does not pay into the apprenticeship levy.
If you are a large organisation, with a pay bill of over £3m you will automatically pay into the apprenticeship levy and your levy will cover the full cost of the apprenticeship training. If your apprenticeship training costs exceed this amount, the government will co-invest in the costs of apprenticeships beyond your allocation of levy funds, leaving you liable to cover 5% of the funding band.
Financial support and incentives
Government incentives
The Government is keen to help businesses grow through apprenticeships.They are currently offering a number of 'stackable' incentives for hiring new apprentices, which could see some employers eligible for up to £8,000 in grants to take on a new apprentice.
Find out more about government incentives here
Apprenticeship levy transfer scheme
Large employers which pay the apprenticeship levy can choose to transfer up to 50% of their levy funds each year to other businesses, to pay for their apprenticeship training and assessment. All employers, including those who do not pay the apprenticeship levy, could receive a levy transfer to help pay towards the cost of apprenticeships.
We supports businesses to undertake a levy transfer in Norfolk.
Find out more about our levy support scheme
Building Futures grant
Please note, Building Futures is currently closed for new applications.
Building Futures aims to increase the number of new apprenticeships offered in South Norfolk and Broadland through the provision of incentive grants, training and wraparound apprenticeship support.
Norfolk businesses looking to hire a new apprentice may be eligible for a £2000 Building Futures grant, if the business or new apprentice is based in South Norfolk or Broadland. Enhanced grants of £5000 are also available to hire a 'Dark Green' apprentice, directly contributing to the green economy.
