Apprenticeship incentives for SMES: Backing Businesses to Invest and Grow

Date: 21/12/2018
Author: Kaplan
Company: Kaplan

During his 2018 budget, the chancellor Philip Hammond announced a package of measures to support employers in 2019. Amongst these was a 50% reduction in the amount that smaller employers have to contribute towards Apprenticeship training (from 10% to 5% of the total fee).

The reduction in costs provides an exciting opportunity for SMEs who are considering an apprentice. This is especially the case when we consider the National Insurance savings and other bursaries associated with taking on a younger apprentice (such as the £1,000 cashback companies receive to take on 16-18 year olds).

With a large proportion of the Chamber’s membership comprising of small to medium-size enterprises, we are keen for our members to be up to date with the changes to apprenticeships as they approach.

To help members with this, our Strategic Partners and leading training providers, Kaplan, have outlined how the decision will affect businesses looking to take on an apprentice or upskill their workforce.

Kaplan’s thoughts

After seeing the Chancellor describe the budget as being aimed at the "strivers, the grafters and the carers," it was pleasant for us to see a powerful, and very real, change to Apprenticeship contributions.

 As well as backing businesses to invest and grow, we’ll also make sure British workers are equipped with the skills they need to thrive and prosper

- Phillip Hammond

This represents a further boost to businesses looking to upskill their current staff and attract the best talent.

It’s understood that the 5% contribution will only apply to apprentices who began their course when the new change comes into play. At the moment details and timescales aren’t explicit, but further information will be announced early this year.

Cost effective upskilling

Thanks to the apprenticeship levy, introduced in 2017, professional training is much more accessible. The subsidy means that this type of expense is no longer reserved for larger organisations, with big training funds.

Head of Client Solutions at Kaplan, Cassandra McDonald, comments:

“The growth of new Apprenticeship standards across a wide range of professional jobs, coupled with government funding, means opting to upskill your workforce costs a lot less than you think.”

Now more than ever, the apprenticeship standards not only make staff training more affordable, but many lead all the way to the achievement of a Professional Qualification.

Many of these qualifications, which are covered within apprenticeship standards, can be trained through a provider such as Kaplan.

To find out about the full range of Professional Qualifications and apprenticeship standards which Kaplan offer, please visit their site, and if you’d like to discover how this can benefit your company or how GMCC can connect you with Kaplan, please get in touch through benefits@gmchamber.co.uk or follow: https://www.gmchamber.co.uk/membership/strategic-partners/kaplan/