Does the UK Government Pay Apprenticeship Wages?

Apprenticeships can be game-changers for businesses, serving as a strategic investment in employee upskilling, development, future-proofing your business, and more. They also provide a unique avenue to recruit and retain excellent talent. 

However, as employers explore the benefits of apprenticeships, a common question arises: does the UK Government contribute to apprenticeship wages? 

Before getting into government involvement, it's essential to understand that apprentices are considered employees and are entitled to receive at least the minimum wage. This ensures fair compensation for their contributions while undergoing training. 

Now, let's explore the role of the UK Government in paying apprenticeship wages.

Does the UK Government Pay Apprenticeship Wages?

Put simply - no, the UK Government does not directly contribute to paying apprenticeship wages. Apprentices are considered employees, and so it is the responsibility of the employer to pay their wages, as they would any other member of staff. 

As employees of your business, you must pay apprentices at least the National Minimum Wage - the amount will depend on the age of your apprentices.

How much do I need to pay my apprentice?

As an employer taking on an apprentice, you are required to pay an hourly wage as follows:

The National Minimum Wage:

Aged 16 - 18: £5.28 per hour

Aged 19 or over in and their first year: £5.28 per hour

Aged 19 or over and has completed the first year of their apprenticeship: entitled to the National Minimum Wage

Aged 23 or over: entitled to the National Living Wage. 

Can employers access apprenticeship funding?

This doesn’t mean that businesses must cover all apprenticeship costs. The UK Government plays a vital role in funding apprenticeships through schemes such as the Apprenticeship Levy, as well as Government incentive payments, and various grants. 

To find out if you’re entitled to additional apprenticeship grants and incentives, head over to our apprenticeship funding guide or get in touch with us to discuss your options. 

What is the Apprenticeship Levy?

The Apprenticeship Levy is a Government-run programme which allows UK businesses to contribute to, and access funding for, apprenticeship training costs.

Introduced in April 2017, the levy requires employers with an annual pay bill of £3 million or more to contribute to apprenticeship funding. Employers subject to the levy contribute 0.5% of their annual pay bill. This contribution is placed into a dedicated fund, which employers can then access to finance apprenticeship training for their workforce.

The Apprenticeship Levy is designed to make investing in apprenticeships smoother for employers by taking some of the financial weight off their shoulders. 

Is taking on an apprentice worth it?

While financial incentives are crucial, you should recognise the broader benefits of apprenticeships. 

Taking part in apprenticeship programmes as an employer helps you to future-proof your business by training, supporting, and cultivating a skilled workforce. It also allows you to address skill gaps, upskill existing employees, and access significant savings on recruitment costs.

Additionally, if you create a positive and supportive environment for your apprentice(s) and emphasise their training with valuable hands-on experience, you are likely to develop a workforce which is fine-tuned to perform and develop your business as efficiently as possible. 

How do I take on an apprentice?

Recruiting an apprentice doesn’t need to be a difficult or stressful process, but it’s important to go through the proper channels. 

Finding a reliable training provider is a crucial step. The Total People Connect service makes finding and recruiting a talented apprenticeship candidate easy with guided support, free recruitment services, and promotion for your business on our marketing channels. 

You should familiarise yourself with the process of hiring apprentices and understanding the resources available. Total People provides comprehensive support and resources; including guidance on the financial aspects of apprenticeship programmes.

Apprenticeship advice for employers

For successful apprenticeships, employers must demonstrate clear communication, mentorship, and structured learning. The process should be designed to align with the unique needs of the business , the apprentice, and their training alike.

Creating a supportive and positive environment is paramount for apprentices' success. Fostering a culture of learning and growth ensures apprentices feel valued and motivated throughout their journey.

Employers should actively advocate for their apprentices, providing guidance, feedback, and opportunities for professional development. This advocacy contributes to a positive and impactful apprenticeship experience and makes for a successful outcome for both the employer and the apprentice.

With tailored support and expertise, Total People makes it easy to have a smooth and successful apprenticeship experience. Contact us today for tailored support in navigating the financial aspects of apprenticeship programmes.