Guidance

How to take on an apprentice

Information about employing an apprentice and how apprenticeship funding works.

Applies to England

Introduction

This guide explains what an employer needs to do and the things they need to consider if they want to employ an apprentice.

Incentive payments for hiring a new apprentice

There are incentive payments available to employers who hire a new apprentice.

Employers can also claim the incentive by hiring an apprentice who has been made redundant.

To make a claim you’ll need to register for an apprenticeship service account.

Using the apprenticeship service

All employers must use the apprenticeship service to access apprenticeship training to meet their business needs, filling skills gaps and boosting productivity.

From April 2021 all new apprenticeships will be funded and managed through the apprenticeship service.

Funding for your apprenticeship

If you pay the apprenticeship levy

Employers have to pay the apprenticeship levy if their annual pay bill is more than £3 million.

If you are a levy-paying employer you need to register for the apprenticeship service so you can manage your apprenticeship funds online. You will be able to pay for training and assessment from your account.

OnceThe the apprenticeship has been confirmed, the government will apply a 10% top-up to the funds you have to spend in your account.

If you don’t have enough funds in your account to pay for apprenticeship training, you must pay 5% of any outstanding balance.

The government will pay the remaining 95%, up to the funding band maximum allocated to the apprenticeship you have chosen.

If you exceed the funding band maximum, you will need to pay all the additional costs.

If you do not pay the apprenticeship levy

As a smaller employer, who does not pay the apprenticeship levy, you will need to reserve funds for apprenticeship training in the ‘finance’ section of your apprenticeship service account. You can also give your training provider permission to reserve funds on your behalf.

We will ask you to make a 5% contribution to the cost of training and the government will pay the remaining 95%, up to the maximum amount of funding allocated to the apprenticeship you have chosen.

If you exceed the funding band maximum, you will need to pay all the additional costs.

You will pay your 5% contribution to your training provider over the lifetime of the apprenticeship training.

There are certain circumstances where the government will fully fund apprenticeship training costs, up to the funding band maximum. More information can be found in the apprenticeship funding rules.

What you’ll need to reserve funds

To start with you need to create an apprenticeship service account if you do not already have one.

Employers who do not pay the apprenticeship levy can reserve funds up to 3 months in advance of the expected apprenticeship start date.

From 3 AprilApril, 2023, small employers who do not pay the apprenticeship levy arewill no longer be limited to a maximum of 10 new apprenticeship starts – they arewill be able to recruit as many high-quality apprentices as their business needs.

You will need to know:

  • which apprenticeship training course the apprentice will be doing
  • what month the apprenticeship training will start

Additional funding and support

You could also be eligible for additional funding and support depending on your apprentice’s circumstances.circumstances Findor outif moreyou fromare thea apprenticeshipsmall fundingemployer rules.employing fewer than 50 employees.

Employers and apprenticeships: things to check

1. Eligibility of apprentice

Examples include, but are not limited to:

  • having the right to work in England
  • spending at least 50% of their working hours in England
  • being employed by you, a connected company or connected charity as defined by HMRC

2. Agreements to sign

Contract of employment

You must sign a contract of employment with your apprentice. This should give details including:

  • pay
  • working hours
  • working conditions

Apprenticeship agreement

You must sign an apprenticeship agreement with your apprentice at the start of their apprenticeship. This gives details of:

  • the skill, trade or occupation the apprentice is being trained for
  • the name of the apprenticeship they are working towards
  • the dates during which the apprenticeship is expected to take place
  • the amount of off-the-job training they will receive

You can write your own apprenticeship agreement or download an apprenticeship agreement template.

TrainingCommitment planstatement

You must sign a training plan (previously known as a commitment statement)statement with your apprentice and training provider.

This sets out the training that will be delivered and how you, your training provider and the apprentice will support the successful achievement of the apprenticeship.apprenticeship, including through experience gained on the job.

You should make sure that the person in your organisation that is managing the apprentice on a day-to-day basis is aware of the contentcommitments that have been made.

The apprentice will only get their apprenticeship certificate after they have passed the assessments at the end of their study. This demonstrates they are occupationally competent.

You can write your own or use the apprenticeship commitment statement template.

It must include:

  • the planned content and schedule for training
  • what planis expected and anyoffered commitmentsby thatthe haveemployer, beenthe made.

    3.training Myprovider Apprenticeshipand Service

    the apprentice
  • how to resolve queries or complaints

You should also make sure that your apprentices have confirmed their apprenticeship details on the myMy apprenticeship service.service.

4.3. Choosing a training provider

The relationship between you and your training provider throughout the apprenticeship is important. Use Find apprenticeship training to search for the right training provider and apprenticeship training courses.

You can also share your interest in a particular apprenticeship training course with all training providers. Training providers are then able to see and respond to the demand for training.

You and your training provider must agree a price for the total cost of each apprenticeship, including the cost of end-point assessment.

You’ll need to:

  • choose an apprenticeship training course at the right level
  • find a training provider

If you haven’t been able to find a suitable training provider for a particular apprenticeship training course, you can share your interest with all training providers.

You or your training provider can use the recruit an apprentice service to advertise apprenticeship job vacancies and manage applications.

5.4. Types of apprenticeships

Apprenticeships are designed by groups of employers with the support of the Institute for Apprenticeships and Technical Education (IfATE).(the Institute).

You can then see the full details of each approved apprenticeship on IfATE’sthe Institute’s website, including information about the assessment plan and the occupational maps.

Each apprenticeship relates to a specific occupation and shows what an apprentice will be doing and the skills required.

Find apprenticeship training for your apprentice.

To successfully complete an apprenticeship,apprenticeship your apprentice will need to complete an end-point assessment.

6.5. End-point assessments

End-point assessment (EPA) is an assessment of the knowledge, skills and behaviours that your apprentice has learned throughout an apprenticeship, which confirms that they are occupationally competent.

Assessments have been designed by employers in the sector and are conducted by independent assessment organisations.

TrainingWorking providerswith oryour youtraining (ifprovider, you have chosen to undertake this role) must select an end-point assessment organisation (EPAO) as soon as possible at the beginning of the apprenticeship.

If your apprentice is working towards an integrated degree apprenticeship the training provider will complete the end-point assessment.

The apprentice will only get their apprenticeship certificate after they have passed all the elements of their EPA, including the required standards of English and maths.

For some apprenticeships, passing the EPA and completing the apprenticeship will also lead to professional recognition by an authorised body. This is outlined in find apprenticeship training and on IfATEthe Institute’s website.

Find an end-point assessment organisation for your apprentice and agree a price with them for your apprentice’s EPA..

AtYour least 6 months before the apprenticeship reaches gateway, your training provider (ormust employercontract ifwith theyyour have chosen toEPAO undertakeon thisyour role)behalf mustwithin contract3 withmonths yourof chosenthe EPAO.apprenticeship starting.

TheWe expect that the cost of end-point assessment should not usually exceed 20% of the funding band maximum.

7.6. Certification

The apprentice will only get their apprenticeship certificate after they have passed the assessments at the end of their study. This demonstrates that they are occupationally competent.

When your apprentice successfully completes their apprenticeship, they will be awarded a certificate.

This is requested by the EPAO from the DepartmentEducation forand EducationSkills (DfE).Funding Agency (ESFA).

Terms, conditions and pay

To employ an apprentice, you need to check and meet the following terms and conditions.

Your apprentice should:

  • be 16 years old or older by the end of the summer holidays
  • not be in full-time education
  • work in a role that is relevant to their apprenticeship
  • work enough paid hours each week to undertake sufficient training to achieve their apprenticeship

Apprentices can be new employees or current employees already working for you.

WhileWe we base the minimum duration of each apprenticeship on an apprentice whoworking works 30 paid hours a week or more,more. thereThis isincludes noany requirement,‘off-the-job’ intraining terms of employment hours. Those who work less than 30 hours per week can still be an apprentice, but they will receive their training over a longer period.do.

You must:

  • pay your apprentice at least the National Minimum Wage for apprentices

  • give your apprentice a job role (or roles) that enables them to gain the knowledge, skills and behaviours they need to achieve their apprenticeship

  • allow your apprentice to combine learning in the workplace with formal off-the-job training

  • pay them for the time they are in work and in off-the-job training

  • give your apprentice a contract of employment that is at least long enough to allow them to complete their apprenticeship successfully

Off-the-job training

At least 20% of an apprentice’s normal working hours (up to an average of 6 hours per week) must be used for off-the-job training. This ensures your apprentice will have the knowledge, skills and behaviours they need for their chosen occupation.

Off-the-job training ismeans training done by the apprentice that is separate to their normal job role.

This can be done at a college or training organisation, on your premises or online, or using a combination of these options.

SomeFor apprenticeshipssome includeapprenticeships, your apprentice may need to study for a work-based qualification (fromfrom LevelGCSE 2(or equivalent) up to degree level).level.

At least 20% of an apprentice’s normal working hours must be used for off-the-job training. This ensures your apprentice will have the knowledge, skills and behaviours they need for their chosen occupation.

Your apprentice may also need to study for maths and English qualifications as part of their apprenticeshipapprenticeship. You thismust isallow additionalyour apprentice time to study and take part in apprenticeship training within their occupationalnormal off-the-jobworking training.hours.

You can agree how all of this training will be provided when you choose a training provider. Read our off-the-employer job-trainingguides guideto support off-the-job training for examples of how this works in practice.

Apprenticeships in Scotland, Wales or Northern Ireland

We have set out the information for apprenticeship funding in England.

Apprentices must spend at least 50% of their working hours in England and have the right to work in England.

If you’re an employer in Scotland, Wales or Northern Ireland, you may also wish to contact your local apprenticeship authority in the devolved administrations.

Further support and information

Updates to this page

Published 5 August 2020
Last updated 730 AugustMarch 20242023 + show all updates
  1. Updated the guidance to reflect changes in the apprenticeship funding rules. Removed the section on ‘Incentive payments for hiring a new apprentice.'

  2. Updated guidance - small employers who do not pay the apprenticeship levy will no longer be limited to a maximum of 10 new apprenticeship starts.

  3. Added link to new guidance page 'Creating an apprenticeship advert'.

  4. Updated 'Commitment statement' section to include information about making sure the apprentice has confirmed their apprenticeship details.

  5. Updated section 3 'Choosing a training provider' to include information about sharing your interest in a particular apprenticeship training course if you haven’t been able to find a suitable training provider for that course.

  6. Update to include information on reserving funding for employers that do not pay the apprenticeship levy.

  7. The financial incentive scheme for taking on new apprentices has been extended from 31 January 2021 to 31 March 2021.

  8. Updated information about claiming incentive payments for hiring a new apprentice.

  9. Added information about new incentive payments for employing new apprentices.

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