Cash for SMEs to hire apprentices

SMALL businesses will be paid up to £1,500 to take on new apprentices under a new Government initiative.

Firms with up to 50 staff will be able to claim the incentive which will be paid in two installments – two months after the apprentice starts and once the trainee has moved into a full-time job.

The offer is part of a range of new measures announced by Vince Cable to encourage more businesses to take on apprentices.

He said: ““pprenticeships are proven to boost the life chances of young people, and are a sound investment in our future competitiveness. So when times are tough, it’s right that we provide additional support to help the smallest firms meet training costs.

“We’ll cut no corners on quality. Apprenticeships will remain the gold standard for excellence in vocational training – but where red tape serves no purpose, we’ll strip it away.”

In addition to the new incentive, the Government has promised to streamline the process for companies looking to employ an apprentice.

Ministers have also said apprenticeships will be focused on areas where they have the biggest impact such as for young adults.

A review into the quality of apprenticeships has also been launched which will report in the spring.

Dr Adam Marshall, director of policy at the British Chambers of Commerce, said: “For some time we have been telling Ministers that small firms must be incentivised to take on apprentices, so we welcome the Government’s moves to strip away some of the obstacles that have made it hard for smaller firms to get engaged.

“Health and safety constraints, inflexible teaching frameworks, and high upfront costs often deter companies from taking on apprentices. By reducing red tape, and incentivising businesses to take the plunge, the government is offering real help to firms and apprentices alike.

“The announcement of an external review of apprenticeship standards and frameworks is a positive step, and will be critical to making apprenticeships flexible and relevant to employers across the country.”