Entirely North West


Thursday April 4 2019

Apprenticeship training costs halved for North West SMEs

Apprenticeship training costs halved for North West SMEs

The amount that a small business pays to fund the cost of apprenticeship training has been reduced from 10% to 5% with effect from 1 April 2019. The measure follows the announcement by the Chancellor in last year’s Autumn Budget in a bid to encourage small businesses to offer more apprenticeship schemes with reduced costs to the business.

This comes as welcome news for North-West based small-to-medium sized businesses who now only need to pay 5% towards the cost of upskilling their workforce or training an apprentice, whilst the government fund the remaining 95%. It would mean, for example, that an apprenticeship that costs £12,000 would now cost the employer £600 – the government would then cover the remaining £11,400.

The reduction of apprenticeship training costs footed by small firms from 10 percent to 5 percent was also coupled with the announcement that levy-paying employers (those with a wage bill of more than £3m) can now transfer 25 per cent of their levy pot of any unused funds to smaller organisations within their supply chain.

Lee Morris, Managing Director of NTG Training commented: “By halving the amount that small businesses have to contribute towards apprenticeship training enables SMEs to use this as an opportunity to fill any skills gap and develop their workforce through flexible apprenticeship training. It shows that the government is taking steps to reinforce apprenticeships as a cost effective and productive way to upskill existing staff and make apprenticeships more affordable for smaller businesses.”

If you would like to find out more about apprenticeship training for your business, please contact NTG Training

"By halving the amount that small businesses have to contribute towards apprenticeship training enables SMEs to use this as an opportunity to fill any skills gap and develop their workforce"
Lee Morris

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