Are you considering hiring an apprentice for your business? Apprenticeships offer a fantastic opportunity to train individuals in specific skills while they work, benefiting both your organisation and the apprentice. From understanding incentive payments to selecting the right training provider, there are various factors to consider.

In this guide, we'll walk you through everything you need to know about employing apprentices in the UK.

What are the incentives for taking on an apprentice?

Employers who hire new apprentices can benefit from financial incentives where employers and training providers could be eligible for £1,000 each if they hire an eligible apprentice. To claim these, employers must register for an apprenticeship service account here.

Funding and support for taking on an apprentice?

Depending on the circumstances of the apprentice or if you're a small employer with fewer than 50 employees, you might be eligible for additional funding and support.

The apprenticeship levy explained

The funding for apprenticeships varies depending on whether you pay the apprenticeship levy or not. If your annual pay bill exceeds £3 million, you're required to pay the apprenticeship levy. In this case, you'll manage your apprenticeship funds online through the apprenticeship service.

For levy-paying employers, the government provides a 10% top-up to the funds available in their account. However, if the funds are insufficient, the employer must cover 5% of the outstanding balance for apprenticeship training costs. The government will pay the remaining 95%, up to the funding band maximum allocated to the apprenticeship you have chosen.

On the other hand, for smaller employers who do not pay the apprenticeship levy, the government will cover 100% of the training costs for apprentices who are aged between 16 and 21 years old when they start their apprenticeship training.

If you’d like help applying for the levy or if you’d like to know more, please visit our page on levy funding here.

What to know before hiring an apprentice

Before hiring an apprentice, there are several important checks and agreements to consider:

Eligibility of Apprentice: Ensure that the apprentice meets all eligibility criteria, including the right to work in England and spending at least 50% of their working hours there.
Agreements to Sign: Sign necessary agreements, including the contract of employment, apprenticeship agreement, and commitment statement.
Choosing a Training Provider: Select a suitable training provider and agree on the total cost of the apprenticeship, including the end-point assessment. At Umbrella Training we provide award-winning training for a variety of hospitality apprenticeships, take a look at our approach here.

Types of Apprenticeships: Understand the different types of apprenticeships available and choose the one that aligns with your business needs. Browse our current open cohorts, these are quick and easy to start for individual staff members or teams.

End-Point Assessments: Plan for the end-point assessment, which confirms the apprentice's occupational competence.
Certification: Once the apprentice completes their apprenticeship successfully, they will receive a certificate.

Terms, conditions and pay

Employers must adhere to specific terms and conditions when employing apprentices:

Apprentices must be at least 16 years old and not in full-time education.
Employers must provide relevant job roles that enable apprentices to achieve their apprenticeship.
Apprentices must receive at least the National Minimum Wage for apprentices.
Employers must allow apprentices to combine workplace learning with formal off-the-job training.

Off-the-job training for apprenticeships

Off-the-job training is a crucial aspect of apprenticeships, ensuring apprentices acquire the necessary skills. It involves training separate from the apprentice's normal role, typically comprising at least 20% or a minimum of 6 hours of their working hours.

This can be done at your training organisation, on your premises online, or using a combination of these options.

By following these guidelines and understanding the processes involved, employers can effectively navigate the journey of hiring and supporting apprentices, contributing to the growth and development of their businesses and the wider economy.

Integrating an apprenticeship into your business

The next step is to introduce the apprentice scheme into your business by informing the necessary teams and working with your training provider to develop their career.

Umbrella Training partnerships are at the heart of our business and we have long-lasting partnerships with some of the top hospitality brands in the UK. The high-level tailoring of our apprenticeship programmes to work with a variety of business goals, values and outcomes. Find out more about how we work here.

Need to know more?

If you’d like more advice about taking on and providing an apprentice with training, please get in touch with our friendly team at Umbrella Training.

References

https://www.gov.uk/guidance/how-to-take-on-an-apprentice#terms-conditions-and-pay

How to take on an Apprentice and provide them with training explained