Apprentices and the minimum wage
Employers must make sure they pay apprentices at least the current minimum wage rate. If an apprentice is 19 or older and past their first year they’re entitled to the worker rate for their age.
Apprenticeship grants for employers
Employers in London may be eligible for a £3000 apprenticeship grant. These grants are available to help small-medium sized employers to recruit a new apprentice aged 16 to 24. The grants are in addition to any training costs for apprentices the employer might get and don’t have to be paid back.
Funding for training apprentices
Employers can also apply for funding to cover training costs for apprentices. This is paid directly to the organisation that provides and supports the apprenticeship - in most cases the learning provider. The amount depends on their sector and the age of the candidate:
- aged 16 to 18: 100 per cent of cost paid, up to Advanced level (Level 3)
- aged 19 to 24: 50 per cent of cost paid
- 25 years and older: employers may only get a contribution.
Apprenticeships and learner loans
In some cases requiring apprentice are required to pay for their own training through an income-contingent loan. Funding is structured to encourage Level 3 qualifications, with learners aged 25 and above expected to contribute 50 per cent of the cost of their learning through a loan.
The government is currently considering whether to direct funding for training to employers (rather than providers) to allow them to select the most appropriate training for their apprentice. Our response to this consultation is available here.