Funding for apprenticeships

What does it cost to train an apprentice?

The government pays 100 per cent of the cost of training for apprentices aged 16 to 18 and 50 per cent of the training costs for young people aged 19 and over. Your Fair Train training provider will apply for the government funding you are entitled to for you and we will show you the details of how we spend that funding. Our commitment is to reduce the administration costs as far as possible so that as much funding as possible is pent on the training. We will show you how we do this.

You are responsible for the wages of the your apprentice, just like you pay any other member of staff. Apprentices are affordable, though, as special National Minimum Wage rules apply. You need to pay the salary costs of an apprentice of at least £92.50 for a 37 hour week, although many organisations pay more.

To work out how much an apprenticeship might cost you download the Fair Train spreadsheet.

Why use Fair Train?

Fair Train is a partnership organisation set up and led by voluntary sector organisations that has been created to make sure that other voluntary sector organisations can benefit from the apprentice training funding available without fear of being exploited by training providers or colleges. Fair Train will deliver and / or manage your apprentice training contracts so that they benefit the employer rather than making a profit for the training provider.

Voluntary sector employers can join Fair Train for free. The costs of your membership are paid for by extra money provided by the National Apprenticeship Service each time we apply, on your behalf, for the government funding available to train an apprentice in your organisation.

Apprentices are cost effective

Research carried out by the University of Warwick Institute for Employment Research (IER) demonstrated that apprenticeships are an investment by employers and that the returns to the employer are significant. The study was based on detailed employer case studies in seven sectors and then scrutinised by business leaders from the Apprenticeships Ambassador Network (AAN). The study concluded that:

• The costs of apprenticeship are recouped relatively quickly as apprentices are more productive than other employees
• Recruiting from the external labour market is more expensive when recruitment and induction costs are taken into account.
• Supply in the external labour market is limited, Apprentices provide a pool of skilled people to select from for future promotion,
• Apprentices are seen as loyal, more likely to stay with the company and steeped in organisational values, and
• Apprentices bring new ideas into organisations.

Research carried out by the Learning and Skills Council also found that:

• 80% of those employers who employ apprentices agree they make their workplace more productive.
• 81% of consumers favour using a company that takes on apprentices.
• 88% of employers who employ apprentices believe that apprenticeships lead to a more motivated and satisfied workforce.
• 83% of employers who employ apprentices rely on their apprenticeships programme to provide the skilled workers that they need for the future.