Increasing the financial incentive for small businesses that employ an apprentice could help encourage more to do so, according to new data from the Federation of Small Businesses (FSB).
To mark this year’s National Apprenticeship Week in England, which starts today (Monday 10 February), the business group has released statistics that found almost half (47%) of small business employers say reintroducing a £3,000 incentive would encourage them to take on apprentices.
Of those small firms that currently employ an apprentice, almost three quarters (73%) say the financial incentive could mean taking on more in the future.
Currently, employers are given £1,000 when they hire an apprentice under 19 years old. FSB is calling on Government to use the summer’s Spending Review to update this to a £3,000 incentive for those hiring an apprentice under 25 years old, exclusively for SMEs.
FSB data also highlighted that 36% of small business employers who currently employ apprentices say reduced admin or paperwork would encourage them to take on more. FSB wants Government to introduce a standardised way of tracking both on and off the job training that apprentices do. This is currently done by apprenticeship providers, all of which have differing approaches, creating more work for employers.
Latest Government statistics show that although the number of apprenticeship starts has increased overall, lower-level apprenticeships, which are traditionally done by smaller firms have fallen. More needs to be done to encourage more small firms to take on entry-level apprentices.
FSB is calling on Government to set targets to increase the number of apprenticeship starts in small businesses across the parliament.
Tina McKenzie, FSB Policy Chair, said: “National Apprenticeship Week is a great opportunity to shine a light on all the fantastic small businesses out there that currently employ apprentices – nurturing their skills, while at the same time growing their business.
“Our members who employ apprentices often tell us how they help fill skills gaps in their team, and also bring in fresh new ideas.
“We’d love to see the starts numbers increasing and more small firms taking on apprentices, particularly at the entry-level. Our research shows what a difference bringing back the £3,000 incentive, which was briefly introduced during the pandemic, would make to the numbers. The Government has an opportunity to make a difference on this at the Spending Review in June.
“With so many struggling with the admin side of taking on an apprentice, it’s clear time and resources are in short supply for small businesses, most of which don’t have a separate HR team. Providing financial incentives would help to offset this.”
