This Is How To Grow: With A Government Apprenticeship Scheme.

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If your business aims to expand and is optimistic about the future but feels constrained by the current economic environment, you might think that setting up an apprenticeship scheme is the last thing you should do. However, according to the latest data, approximately 319,000 young people aged 16 to 24 started an apprenticeship in the past year. This shows a significant increase and underscores attempts to boosting Gen-Z employment through the government apprenticeship scheme.

The government has introduced the Apprentice Grant for Employers (AGE) to overcome the bottleneck in new talent. This funding initiative encourages small to medium-sized companies with fewer than 250 employees to recruit their first young apprentices.

Understanding the Apprentice Grant for Employers (AGE)

The National Apprenticeship Service (NAS) offers up to 40,000 Apprenticeship Grants to small and medium-sized businesses that recruit their first apprentice aged 16 to 24. This initiative is aimed directly at small to medium-sized employers interested in employing a young apprentice but facing financial constraints or a lack of opportunity. The scheme is available only to employers who have not taken on an apprentice in the last three years.

Key Benefits for Your Business

Taking on an apprentice offers numerous advantages:

  • Skilled Workforce: You can train and guide an apprentice towards a skilled or managerial role, tailoring their development to meet your business needs.
  • Community Contribution: Your company contributes positively to the community by employing an apprentice.
  • Long-term Planning: This initiative can kickstart a longer-term programme that your company may have delayed due to economic uncertainty.

Financial Incentives

AGE provides up to 40,000 grants of up to £1,500 for small to medium-sized businesses that recruit a 16 to 24-year-old apprentice. This grant is in addition to the training costs covered by the Apprenticeship framework, which are met in full for young people aged 16 to 18 and 50% for those aged 19 to 24.

Cost-Effectiveness

Apprenticeships are up to 75% more cost-effective than recruiting more experienced or graduate staff. Therefore, you are likely to see a positive return on your investment. However, to make the scheme viable, apprenticeships must last at least 12 months and guarantee progress in training and workplace learning.

Multiple Grants

Most employers will want to access AGE to support the recruitment of apprentices. You could benefit from up to three grants depending on budget availability and your commitment to support the apprentice to the end of their programme. This is conditional on your commitment to the total number of apprentices at the upfront agreement stage.

The AGE initiative is an excellent way to kickstart youth employment and benefit your industry. By taking on an apprentice, you enhance your workforce and contribute to the broader economy. Consider the advantages of apprentices to your business. Explore how the Apprentice Grant for Employers can support your business growth. 

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Frequently Asked Questions (FAQ)

1. What are the eligibility criteria for an employer to receive the AGE grant?

Answer: To be eligible for the AGE grant, an employer must:

  • Have fewer than 250 employees.
  • Not have hired an apprentice in the last three years.
  • Commit to employing the apprentice for at least 12 months.
  • Ensure that the apprentice is aged 16 to 24 years old at the time of recruitment.

For more details on eligibility, you can visit the official National Apprenticeship Service guidelines.

2. What types of training and support are provided to apprentices under the AGE initiative?

Answer: The training provided under the AGE initiative includes:

  • Full funding for apprenticeship training for those aged 16 to 18 years old.
  • 50% funding for apprenticeship training for those aged 19 to 24 years old.
  • Support from training providers to ensure the apprentice receives quality education and practical experience relevant to their role.

The training covers various aspects, including technical skills, soft skills, and workplace competencies. More information on the training and support can be found on the Apprenticeships.gov.uk website.

3. How does an employer apply for the AGE grant, and what is the application process like?

Answer: To apply for the AGE grant, an employer must follow these steps:

  1. Register: Create an account on the Apprenticeship Service.
  2. Find a Training Provider: Partner with an approved training provider who will help with the recruitment and training of the apprentice.
  3. Submit an Application: Complete and submit the application form provided by the National Apprenticeship Service, including details about the business and the apprenticeship role.
  4. Receive Confirmation: Once the application is approved, the employer will receive confirmation and details on how the grant will be disbursed.

For a detailed guide on the application process, visit the GOV.UK Apprenticeship Funding page.

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