On this page
Our highly skilled team at the IoT are here to support your business in hiring an apprentice from start to finish. Please visit our ‘employers‘ page for more information.
Here are just a few of the benefits of hiring an Apprentice:
- Apprenticeships are a great way of attracting enthusiastic talent with fresh ideas
- They can be tailored to specific job roles, making them flexible to the needs of the business
- Apprenticeships provide you with the skilled people you need for the future Apprenticeships can help reduce staff turnover, by increasing employee satisfaction and loyalty
- Apprenticeships are a tried and tested way to recruit new staff, re-train or upskill existing staff
- The average apprenticeship improves productivity by over £10,000 per year
- When you employ an apprentice below the age of 25, you are no longer required to pay employer National Insurance contributions for them
- Whatever sector you’re in, there are so many benefits that apprentices can bring to your business
The Apprenticeship Levy has been in effect from April 2017 and is designed to raise £3bn annually to supplement Government apprenticeship funding.
Here’s the facts:
- If your payroll bill is in excess of £3m, you will have to pay the Apprenticeship Levy. That’s 2% of employers
- The levy applies to England only
- The levy rate is 0.5% (gross) of your total annual pay bill and paid through PAYE
- You pay regardless of whether you train apprentices or not
- All employers have an allowance of £15,000 to offset against their levy liability. The levy allowance is not a cash payment
- Employers in England who pay the levy will be able to get out more than they pay into the levy, through a 10% top-up to their digital accounts
- You can access your Levy funds through an online portal called the Apprenticeship Service
- You can use your levy funds to buy Apprenticeship training from approved providers
Your apprentice must:
- Be paid at least the national minimum wage
- Be an employee
- Work with experienced staff
- Learn job-specific skills
- Study during their working week
Hiring your apprentice
There are several steps to taking on an apprentice:
- You can identify your own apprentices
- Advertise your apprenticeship – we will do this for you through the ‘recruit an apprentice’ service
- Select your apprentice and make an apprenticeship agreement and commitment statement with them
A step by step guide to taking on an apprentice
As an employer you must advertise the role and interview candidates fairly. You are able to use a recruitment agency to do this or do it yourself.
Apprentices get paid different amounts. There is a special national Apprenticeship minimum wage, but most apprentices get paid more than that. Many apprentices, particularly at the higher levels, get paid significantly more.
Apprentices are entitled to the apprentice rate if they’re either:
- aged under 19
- aged 19 or over and in the first year of their apprenticeship
An apprentice aged 21 in the first year of their apprenticeship is entitled to a minimum hourly rate of £4.81.
Apprentices are entitled to the minimum wage for their age if they both:
- are aged 19 or over
- have completed the first year of their apprenticeship
An apprentice aged 21 who has completed the first year of their apprenticeship is entitled to a minimum hourly rate of £9.18.
UK Qualification Comparison Chart*
* Adapted from a table produced by Ofqual, QAA, SCQF, CCEA, CQFW & The National Qualifications Authority of Ireland.