Facing high tuition fees and skill shortages, more young people and employers alike are turning to apprenticeships. Apprenticeships offer a means to address skill shortages and access training and employment opportunities.
Over 132 000 people started an apprenticeship programme in 2024, with under 19s accounting for over 30% of starters. So what are the benefits of such programmes, and how can you start one at your business? Supporting your HR needs from the outset.
Firstly, apprenticeships offer a practical form of training, which may better suit some individuals than a university environment. At the end of the scheme, apprentices receive a nationally recognised qualification.
Data indicates that 91% of apprentices go on to employment or further training. While working under the apprenticeship, the individual receives pay, including holiday pay, and there are no course fees to pay.
For employers facing skills shortages, apprenticeships can also be an attractive option.
An entry-level apprenticeship scheme can provide a pipeline of skilled individuals who have been trained specifically to the standard and skill set required in the business.
Employees trained in this way are familiar with the company’s culture and products.
The contribution to costs for the training is also minimal for the employer, normally around 5% of the course cost. The apprenticeship levy can also help reduce the financial burden of taking on apprenticeships.
Apprenticeships are nationally recognised qualifications, comparable to other educational achievements, and can take one to five years to complete. In the UK, education levels range from Level 1 (GCSE grades 1-3) to Level 8 (Doctorate/PhD).
Apprenticeships can be taken from level 2 to level 7 as follows:
In fact many higher apprenticeships will award degrees alongside the apprenticeship qualification, making apprenticeships an attractive, debt-free alternative to traditional university.
Young people can start an apprenticeship from the age of 16. An employer would normally employ an entry level apprentice on an apprenticeship contract.
These contracts automatically terminate upon successful completion of the apprenticeship.
The contract will also end if the apprentice does not fulfil the obligations of the scheme.
Criteria which may result in termination of an apprenticeship contract include not undertaking the required levels of study or unsatisfactory conduct and/or performance.
Upon successful completion of the apprenticeship, the employer may offer further employment, but the apprentice is under no obligation to accept any further offer.
During the apprenticeship, the apprentice must be given 20% of their working hours to devote to fulfilling the study element of the apprenticeship.
The chosen apprenticeship pathway will be linked to various training providers.
The role of the training provider is to provide the educational element of the apprenticeship. The provider will oversee that the apprentice is progressing with their learning and getting sufficient and appropriate experience at work.
Apprentices are assessed by an endpoint assessing institution, which is independent of the training provider.
However, the employer does not need to be concerned with organising this, as the training provider will organise the end-point assessment of the apprentice.
Employers who wish to employ an apprentice must have a government digital account. In addition, the employer must demonstrate suitable health and safety policies and arrangements to the training provider and provide proof of employer liability insurance.
The Institute for Apprenticeships and Technical Education (IfATE) lists the various apprenticeship pathways.
Advertising for an apprentice in early spring is ideal. Employers then have access to the best applicants leaving full-time education, who will be searching to start in June or September.
The employer is required to pay the apprentice during the apprenticeship.
The apprenticeship rate from April 2025 will be £7.55 per hour for apprentices under 19 years old, and apprentices 19 and older will receive this rate in the first year of the apprenticeship and thereafter at least the minimum wage for their age.
However, employers are well advised to pay at least the minimum wage or the going rate for a trainee on that apprenticeship pathway.
In a competitive market, this minimises the risk of the apprentice dropping out prior to completing the course.
Upon completing the course, employers should review the salary again to reflect the market rate for skilled work.
Are you considering offering apprenticeships in your business? For more advice beyond an apprenticeships employer’s guide contact HR First.
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