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Quick Guide to Apprenticeship Funding for Businesses

Apprenticeships for UK BusinessesReading Time: 3 minutes

 

Apprenticeships for UK Businesses

 

By Zoe Allen, Sona Circle

In the UK, the government provides a huge amount of funding and incentives for businesses to encourage them to hire apprentices. For larger businesses, this includes the apprenticeship levy scheme. If your business if not yet taking advantage of this, then read on to learn more about the funding available and how it could benefit your business.

What are apprenticeships?

Apprenticeships are paid training roles within a company that provide practical, on-the-job training for a particular trade or career. They are provided by a host business and a training provider, such as a local college, where the apprentices also learn about the trade in a classroom setting. At least 20% of the apprentice’s time will be spent with the training provider. An apprenticeship can take between one and six years to complete.

To read the UK government’s guidelines on apprenticeships schemes, click here.

Apprenticeships develop a dedicated and qualified talent pipeline, suited perfectly to your company. It gives businesses the opportunity to train employees specifically for your company and roles that you may have in the future. Take a look at this article discussing why you should hire an apprentice.

What’s more, if your business has a payroll of over £3 million, you will already be paying an apprenticeship levy which you can invest back into apprenticeships. If you are a smaller business, you are eligible to have 95% of your apprentice’s funding costs paid by the UK government. Read on to learn more.

The apprenticeship levy

In 2017, a new levy was introduced to encourage large businesses to provide high-quality apprenticeships.

If your company has a payroll of over £3 million, you will pay 0.5% of the monthly payroll (minus a levy allowance of 15,000) into a fund that can then be used to fund apprenticeship training. In addition, the UK government will add an extra 10% into this fund.

You then have 24 months to spend your levy fund on apprenticeship schemes within your business, or with partners in your supply chain (up to 25% of your fund). If you have not spent this money on apprentices after 24 months, it will be claimed by HMRC.

I, n a nutshell, if you aren’t investing the levy back into your business through training apprentices, you lose it.

It’s also worth remembering that apprentices do not have to be young, untrained, new recruits. The money can be spent on training current employees, people of any age, or on people who already have some training or higher education, including people with degrees.

To learn more, take a look at this useful page and video from the Apprenticeship Academy.

What if my company has a payroll of less than £3 million?

If you do not qualify for paying the apprenticeship levy, you are eligible for direct government funding of up to 95% of an apprentice’s training and assessment with a training provider. You will pay in 5%.

In some situations, you may also be eligible for extra funding, especially if the apprentice is from a disadvantaged background.

You can find out more on the UK government website.

Would it work for you?

Absolutely.

Training a skilled and dedicated apprentice can be an extremely affordable, effective and efficient way to train your ideal, diverse employees and can work for businesses of any size.

If you are a large business who already pays the apprenticeship levy, if you do not hire apprentices you could be losing significant amounts of money that could be reinvested into your business.

If you are a smaller business, it can cost you a very small amount to hire and train your ideal employees with the government funding 95% of training.

At Sona Circle Recruitment, we are on a mission to help more refugees and people seeking asylum in the UK access valuable training and employment to allow them to integrate into their new lives in the UK.

With refugees often being young in age and experience, arriving from a break from work, or not used to UK workplace culture, apprenticeships are an ideal way to help talented, positive and bright refugees integrate into the UK workforce. Refugees and people seeking asylum are eligible for apprenticeship funding and may even be eligible for even more, circumstance-specific funding.

If you want to learn more about why refugees can be an asset to any business, read our blog post here.

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A Guide to Apprenticeships for Refugees and Asylum Seekers

Workplace ApprenticeshipReading Time: 3 minutes

 

 

By Zoe Allen, Sona Circle

What are apprenticeships?

Apprenticeships are training programmes designed to prepare you for a career in a particular trade or profession. Importantly, they include practical, on-the-job training, and you are paid whilst you complete your apprenticeship.

Apprentices also have to spend at least 20% of their time (i.e. usually one day a week) completing more academic training for their profession, usually in a classroom setting, and often at a local college or university.

Apprenticeships vary in length between 1 and 6 years, depending on the profession you are training in.

Can I do an apprenticeship as a refugee or whilst an asylum seeker?

In the UK, refugees (those granted settled refugee status) have open access to the job market and so can legally take part in any apprenticeship. However, the rules are a little different for people seeking asylum (who have not had their claim accepted).

If you have been in the UK for 6 months without your asylum claim receiving a response, you are eligible to apply for and start an apprenticeship. This is also the case if you have appealed against a rejection of your application and, after 6 months, you still have not received a reply to your repeal.

This is different from other forms of paid work; if you want to take up any other form of work, you have to wait for 12 months without a response before you can apply for a permit.

If you are seeking asylum and thinking of applying for an apprenticeship, you should discuss this with your case handler.

What are the benefits of doing an apprenticeship as a refugee or an asylum seeker?

Apprenticeships teach you tangible, hands-on skills that are designed to make you job-ready as soon as you leave the programme. This means that you are more likely to be able to secure a steady income quickly and easily.

If you have not had a job before, or do not have experience with skilled work, then hands-on training that allows you to earn while you learn might be perfect for you.

If you are still developing your English skills, it might suit you better to complete a training course with less written work and reading, and more practical work. Working as an apprentice is also likely to include one-on-one or small group training, which is ideal to help you improve your spoken English skills and form social connections in the UK.

As above, a big benefit is that if you are seeking asylum you can start an apprenticeship (and start earning an income) 6 months earlier than you can apply to start any other form of paid work.

Where can I find apprenticeships?

At Sona Circle Recruitment we have partnered with apprenticeship provider WhiteHat to advertise apprenticeships to refugees on our website. You can take a look at the apprenticeships currently available here.

There are also many other ways you can find apprenticeships that work for you or operate in your area. You can visit the website of your local college, university or training centre to see if they partner with local companies to offer apprenticeship training.

There are also a lot of searchable apprenticeship boards online, such as the government’s dedicated site, apprenticeships.gov.uk or on the UCAS website. If there is a particular company you are interested in working with, you can contact them directly to see if they offer an apprenticeship programme.