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Stuart Gentle Publisher at Onrec

Businesses snap up apprenticeship grants

Government funding to help businesses take on an apprentice has led to the creation of at least 18,900 new Apprenticeships in England in the past year. That’s according to provisional data released today by the National Apprenticeship Service.

  • At least 18,900 new Apprenticeships created in just nine months
  • Two-thirds of funding goes to creating Apprenticeships for the under 19s


Government funding to help businesses take on an apprentice has led to the creation of at least 18,900 new Apprenticeships in England in the past year.  That’s according to provisional data released today by the National Apprenticeship Service. (1)

The data covers the nine month period since the Apprenticeship Grant for Employers of 16 to 24 year olds (AGE 16 to 24) was launched in February 2012. It reveals there were 6,800 Apprenticeship starts, for which a payment was made through the initiative, with a further 12,100 in the pipeline (2) between February and October 2012.

The figures also indicate encouraging signs for 16-18 year olds looking for an Apprenticeship.  Around two thirds of the grants awarded were to recruit an apprentice aged under 19.  With regards to level, 14,200 grants were given to fund Intermediate Level Apprenticeships and 4,500 for Advanced Level Apprenticeships.

AGE 16 to 24 was introduced last year to help small and medium sized businesses with less than 1000 employees take on an apprentice(3) and secure the skills they need to grow.   The £1,500 grant is available to employers who have never employed an apprentice before, or have not done so in last 12 months.  Initially only on offer during the 2012/13 financial year, it was announced last month that the funding has been extended until at least 31st December 2013.

David Way, Chief Executive of the National Apprenticeship Service, said: “We are delighted AGE 16 to 24 has been so well received by businesses and that, as a result, it has created a wide range of new opportunities for young people.  It is particularly encouraging to see that a substantial number of the grants have gone towards creating Apprenticeships for 16-18 year olds. This has been a key focus.”

“Apprenticeships can deliver the skills that businesses need to grow and I would therefore encourage more organisations to explore the funding available and find out how they can benefit from introducing an apprentice into their workforce.”

The National Apprenticeship Service hopes AGE 16 to 24 will encourage more employers to consider recruiting through Apprenticeships, which now cover more than 250 skills and industries across 1,400 job roles and three Apprenticeship levels.

To find out more about Apprenticeships and AGE 16 to 24 and to try the ‘Return on Investment Tool’ or to search for a vacancy, visit apprenticeships.org.uk or call 08000 150 600.

Sources

1.     Statistical First Release – 31 January 2013. http://www.thedataservice.org.uk/Statistics/statisticalfirstrelease/sfr_current/

2.     AGE 16 to 24 was launched in February 2012. Payments were drawn down once the new Apprentice had been in post for 13 weeks, therefore Apprenticeships starting after 5 September 2012 are not included in the Payments Made column because they had not yet triggered a payment.

Pipeline Starts show those starting between February 2012 and October 2012 who have not yet qualified for a payment, but the payment would be made once the Apprentice has been in post for 13 weeks.

AGE Incentive starts are defined through the Learning Delivery Funding and Monitoring Codes with values of 132 or 133 as per the ILR specification (http://www.theia.org.uk/ilr/ilrdocuments/201112_ilrdetail.htm). These are validated by the Skills Funding Agency.

3.     The government is offering businesses with up to 1,000 employees a grant of up to £1,500 to recruit their first apprentice aged 16 to 24.  Initially only on offer during the 2012/13 financial year, this initiative has now been extended for a further year.

Employers who have recruited an apprentice in the past 12 months (on a rolling time period) are not eligible for the grant because its aim is to support employers to offer new and additional Apprenticeships to young people.  The £1,500 grant is in addition to the training costs of the chosen Apprenticeship framework, which are met in full for 16-18 year olds and 50% for those aged 19-24.  Employers will be required to commit to employing an apprentice for a minimum of 12 months, or the time it takes for the apprentice to complete their programme.

4.     Following employer feedback, the scheme has also been made more accessible. 

  • The £1500 incentive is now paid as a single instalment, rather than being split over two payments
  • The period of time between an employer last taking on an apprentice, and being eligible to apply for the grant, has been reduced to a year 
  • The number of apprentices employers can claim the grant for has been increased to 10
  • Access to the scheme has been widened, and is now available to businesses with up to 1000 employees.