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How much does it cost to hire an apprentice?

How much will hiring an apprentice cost my business?

Like all employees, there are two costs to hiring an apprentice: Paying their wages and paying for their training.

Apprentices who are aged under 19 and in their first year of an apprenticeship must be paid the Apprenticeship National Minimum Wage, but those who are past their first year or aged 19 or over must be paid the National Minimum Wage as according to their age.

You can also apply for funding to cover the costs of training apprentices. This money will be paid directly to Nescot to cover the training and support the college provides. The amount depends on the sector you work in and the age of your apprentice, but could be 100% of the cost for a young person aged between 16 and 18, 50% of the cost for someone aged between 19 and 24, and a contribution of 40% for those aged 25 and over.

In addition, if your business has 1,000 employees or fewer, hasn’t started an apprentice in the past 12 months and wants to take on one or more apprentices aged between 16 and 24, you may be eligible for a grant. The funding, which is given by the National Apprenticeship Service, is up to £1,500 per apprentice, and is aimed at supporting business growth by offering employment to young people. The grant is in addition to any costs you’re paid for training your apprentices, and the money doesn’t have to be paid back.

Apprentices who are aged 24 and over and studying an Advanced or Higher Apprenticeship can also be offered an Advanced Learning Loan. You can read more about this here.

If you have any questions about taking on an apprentice, call the Apprenticeships Team on 020 8394 8425.





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