Government pledges to support 20,000 more apprenticeships 

The government will fully fund apprenticeships in small firms for people aged 21 or under from 1 April, the prime minister has announced.

Speaking at the Business Connect conference in Warwickshire today (18 March), Rishi Sunak pledged £60m of new government funding for next year.

From the start of April, the government will also increase the amount of funding that employers who are paying the apprenticeship levy can pass on to other businesses. 

Under the new measures, large employers who pay the apprenticeship levy will be able to transfer up to 50% of their funds – up from 25% currently – to support other businesses to take on apprentices.

The changes are expected to enable up to 20,000 more apprenticeships, primarily for younger people. 

Commenting on the announcement, education secretary Gillian Keegan said: “This government has built a world-leading apprenticeship system from the ground up – with apprenticeships now available in around 70% of all occupations.

“Apprenticeships are a fantastic way for businesses to develop the skills they need, and these new measures will help more businesses and young people benefit from them.

“Our plan to deliver a high-growth, high-skilled economy is working, with more opportunities available to young people than ever before.”

The new funding has been cautiously welcomed by industry leaders. 

Christian Warden, engagement director at early careers platform Talentview Construction, said: “Misunderstanding around the government’s apprenticeship levy and cost of training apprentices has long been a barrier for employers in many sectors, including construction. 

“The PM’s funding boost is significant, but it must come with more support to simplify and clarify the funding journey throughout, especially for small businesses without HR and recruitment functions.

“Currently, small businesses only pay 5% towards the cost of training and assessing their apprentice – as will any employer with an annual payroll of under £3m. While funding has been an issue for many companies, there are other, no less significant blockers preventing growth of our construction apprentice workforce.”

Warden added that it will take “deeper digging” to tackle negative perceptions of the value of apprenticeships for businesses. 

“The reality is 90% of apprentices stay with the same company after they have completed training, while 72% of businesses have also reported improved productivity as a result of employing an apprentice,” he said.