Apprenticeship funding... who pays what
Bedford College, Cauldwell Street, Bedford MK42 9AH Tel: 01234 291747 training@bedford.ac.uk www.bedford.ac.uk/employers
Apprenticeships TRAINING PROGRAMMES THAT WORK FOR YOuR BuSINESS
The job
The training
If you employ an apprentice you will need to pay them at least £2.68 per hour* (the National Minimum Wage for apprentices), although you are free to pay more and many employers choose to do so – the average salary for an apprentice is around £170 per week**.
The government’s Skills Funding Agency (SFA) makes contributions towards the cost of an apprenticeship training programme, which is paid directly to Bedford College as the learning provider who offers the training. The amount that you and your apprentice will have to pay towards the cost of training depends on the age of the apprentice on the programme... • For those aged 16-18 you will only need to pay your apprentice's salary. Your apprentice won't have to pay anything. • For those aged 19-23 you will need to pay Bedford College £500 per year of the programme plus your apprentice's salary. Your apprentice won't have to pay anything. • For those aged 24+ you will need to pay Bedford College £500 per year of the programme plus your apprentice's salary. You or your apprentice will also have to pay 50% of the cost of the training – loans and Direct Debit instalments are available to help make apprenticeship costs more affordable for apprentices, see below.
What financial help is available? Apprenticeship Grant for Employers of 16 to 24 year olds (AGE 16 to 24) The AGE 16 to 24 is designed to encourage employers to offer apprenticeships to young people through a tax-free wage grant worth £1,500. Employers that qualify will receive the grant on top of the contribution already being made by the SFA (see above) – which means taking on an apprentice could make even more financial sense for your business. Will my business qualify? If your business has up to 1,000 employees and you’re looking to recruit your first apprentice (or have not employed an apprentice within the last 12 months), you could qualify for the grant. Remember: the apprentice you are recruiting must be aged 16 to 24. Please note: the AGE 16 to 24 is subject to availability. Call us for the latest details.
24+ Advanced Learning Loans New for 2013, these low-interest loans are designed to help towards the training costs of Advanced (Level 3) apprenticeship programmes for apprentices who are aged 24 and over. The loan is taken out by the apprentice and can pay for up to 50% of the cost of training. There’s no credit check for the loan, household income isn’t taken into account and paying back the loan is simple, with repayments only beginning when the apprentice has completed their qualification and they’re earning over £21,000 per year – it’s a great way to make apprenticeships more affordable.
Professional and Career Development Loans To fund their apprenticeship, an apprentice can also take out a Professional and Career Development Loan – a commercial loan from a bank designed to pay the cost of qualifications and training. Repayments start one month after the apprentice leaves their course, regardless of the salary they are receiving or whether they have completed their qualification.
Self funding If your apprentice has savings or other means of financing their training, they may choose to pay their share of the apprenticeship costs directly. To help make this option more affordable, Bedford College offers Direct Debit instalments to spread the cost.
For more information on all of the funding options available for apprenticeships visit www.bedford.ac.uk/employers * From 1 October 2013 ** Source: National Apprenticeship Service www.apprenticeships.org.uk
APPRENTICESHIP GuIDE 2013/14
Get £1,500 tax-free just for taking on an apprentice! Eligibility rules apply, see inside for details.