
Our Employer’s Guide to Apprenticeships
Apprenticeships offer a cost-effective way to nurture talent whether you’re considering taking on a new apprentice or training an existing employee. Understanding the intricacies of apprenticeships, the costs involved and the funding opportunities available is essential. Here’s our guide to help employers navigate the main aspects of apprenticeships.
How to select the right apprenticeship standard?
Every apprenticeship must have a ‘Standard’ on which to build the training programme, set the maximum funding level and define the End Point Assessment criteria.
Apprenticeship Standards
·There are hundreds of Standards covering every industry imaginable!
·It is crucial for the Knoweldge, Skills and Behaviours set out within the Standard to align with the skills and capabilities of the role you wish to employ an apprentice within. The same applies if an existing member of staff is joining an apprenticeship.
·Standards are available from level 2 – level 7 and each apprenticeship has a typical duration and funding maximum.
·Each Standard has an End Point Assessment (EPA) which the apprentice, at the end of the training period, must pass to complete their programme.
Top tip
·Engage with an Apprenticeship Training Provider (like us) and consult with them. They can help select the Standard that best fits your role and business.
Understanding the Funding Rules
Understanding the financial commitment of hiring an apprentice is crucial. Your business’s payroll size determines whether you are a Levy Payer or a Non-Levy Payer, impacting how apprenticeship training is funded. Here are the key factors:
Levy Payers
- Businesses with a payroll exceeding £3 million/year pay into an apprenticeship levy.
- Funds in your levy account cover apprenticeship training costs and unused funds (after a period) expire and are kept by the treasury.
Non-Levy Payers
- Non-Levy employers have a payroll under £3 million/year.
- If you employ an apprentice aged between 16 and 21 years old on the first day of their apprenticeship, the government will pay for 100% of the training cost.
- If you employ an apprentice aged 22 or over on the first day of their apprenticeship, the government covers 95% of training costs, with the employer contributing the remaining 5% - this is called co-investment. Example: If the training provider charges £21,000 (maximum funding band), your 5% co-investment would be £1,050.
£1,000 payment to the employer for young Apprentices.
- If you hire an apprentice aged 16 to 18-years-old (regardless of if you are Levy of Non-Levy) on the first day of their apprenticeship you receive a £1,000 incentive payment, paid in two instalments of £500 via the training provider.
Training Cost (covered by the funding points above)
- The training cost is agreed upon with your provider before the apprenticeship begins.
- This includes all relevant training and assessment delivered by the training provider and the cost of the End Point Assessment.
Wages (not covered by the funding points above)
- Apprentices under 19 or in the first year of their apprenticeship are entitled to the apprenticeship minimum wage of £6.40/hour (£7.55 from April 2025).
- After the first year if aged 19+, they are entitled to the national minimum wage for their age group.
- Employers are encouraged to offer competitive wages to attract top talent, applicants will take starting wage and the wage increase projection over the course of the apprenticeship into consideration when deciding to apply for or accept an apprenticeship.
Costs (your time, expertise, effort not covered by the funding points above)
- Recruitment and administration efforts.
- Mentoring, managing, and supporting the apprentice.
- Off-the-job training requirement, which impacts productivity as apprentices dedicate part of their working hours to learning – especially important to consider if considering an apprenticeship for an existing member of staff.
Recruiting an Apprentice
Finding the right person is the most important part of the process. The successful candidate will begin the process to gain a recognised qualification within a system that promotes loyalty and longevity to their employment so, you need to find someone who you want to employ for the long-term.
Finding the right person
- Most providers will be able to help you with the recruitment, but ultimately it is your choice as to who you employ as your apprentice.
- It is good to have the training provider involved in the process because a candidate's prior learning and experience must be taken into consideration when establishing their eligibility for the apprenticeship on offer.
Top tip
- Get out and support your local schools and colleges with their careers events, make sure the next generation of worker know your business exists!
Apprenticeship Delivery
There are many different providers, each will have a different approach to the way in which they deliver their programmes. Although we all work within the same Apprenticeship Standards, the manner and quality of delivery can differ considerably.
Choosing the right Training Provider for you
- Different providers have different methods of training the apprentice away from the workplace. Some may deliver via day release, some block release, some online, some face-to-face.
- It is important to understand how the provider you select to work with plans to deliver the apprenticeship, where they plan to deliver the apprenticeship and how much support/engagement they will provide you and the apprentice. They will be involved from start to finish including coming into your business to assess and work with the apprentice.
Top tip
- If times allows, it is a good idea to procure the apprenticeship provider in the same way that you would for other aspects of your business. Engage with several providers, ask them to set out how they would meet your training needs and what the delivery would look like. You can then go with the provider who best fits your business.
Apprentice Mentor
A mentor within a business is an expert in their field who is able and willing to pass on their knowledge and experience to the apprentice.
Get buy-in from you team
- Getting your whole staff team on board with training an apprentice is important, and having one key member of staff as the mentor is a great way to ensure the apprentice is well supported and managed through their programme.
- Having one mentor is also helpful for the Training Provider so they have a single point of contact at your business.
- The mentor will monitor an individual’s progress and provide constructive feedback aimed towards further development.
- Being an apprentice mentor is not just limited to developing a learner’s knowledge and skills in relation to the job they will undertake in the future; they must also support an apprentice's transition into the working environment as many will have come straight from school. This may include helping them to understand how to conduct themselves, work with others and develop confidence in all the areas experienced workers take for granted.
- The Mentor doesn’t necessarily have to work with the apprentice all the time. In smaller businesses, the apprentice may well work under the mentor all the time. In larger businesses, there is a good chance that the apprenticeship programme will see the person move through several departments and work under many different people within the business. In this case, it is still preferable to have one person centrally who oversees the apprenticeship programme, even if they are not with the apprentice all the time.
Top tip
- Engage with key people in your team early, when selecting the Standard and Training Provider. They will be more on board if they have been part of the planning process.
Understanding Off-the-job training
Off-the-job training (OTJ) is delivered to the apprentice helping them gain the knowledge, skills and behaviours (KSBs) needed to be competent their job.
Off the job but within working hours
- The phrase ‘off-the-job’ can be confusing as you might jump to the conclusion that this learning is done in addition to the apprentice’s hours or must be completed away from the workplace. Neither of these are true!
- OTJ training hours must be within an apprentice’s normal working hours, must be related to the Apprenticeship Standard, and must teach them new knowledge, skills or behaviours.
- Hours can be recorded both in the workplace or away from the workplace such as when the apprentice is studying on release to the training provider.
- The apprentice must do a minimum of six hours OTJ training a week.
Top tip
- A good Training Provider will support you in identifying how and when OTJ training will take place, plus guide you as to what the apprentice needs throughout the training programme.
End Point Assessment
Every Apprenticeship finishes with the apprentice completing an End Point Assessment (EPA).
Preparation is key to a successful EPA
- Conducted by a third-party EPA Organisation (unrelated to the Training Provider), this can consist of a project, multiple choice test, workplace observations or a professional discussion supported by the apprentice’s portfolio.
- Your Training Provider will consult with you to decide which EPA Organisation to use, selected from a central government register.
- Together with your training provider, you must decide at what point each apprentice is ready to progress through their Final Gateway and be put forward for their EPA.
- The EPA will take place within the months of the Final Gateway
Top Tip
- Your training provider should spend time preparing the apprentice for their end point assessment to ensure the maximum chance of success.
Simplifying the Process – Free Consultation
Apprenticeships can seem complex, but they are a rewarding investment in your business’s future. Our free consultancy service helps you:
- Understand the financial elements specific to your business.
- Explore and tailor an apprenticeship training programme for your role and business.
- Navigate the process with ease, from recruitment to end point assessment.
Let’s Talk!
Ready to make apprenticeships work for your business? Book a no-obligation consultation today! Whether it’s an on-site visit or an online call, we’re here to guide you every step of the way.