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Paying for apprenticeships as a small or medium sized business

Key facts that small and medium businesses need to know about paying for the new apprenticeships:

  • The government will pay 90% of the cost of apprenticeships for businesses with a pay bill of less than £3million
  • The government will pay 100% of training costs for small businesses that employ apprentices aged 16-18 - small businesses are defined as those with an annual pay bill of less than £3million that employ 50 people or less.
  • There will be additional payments for organisations training 16-18 year olds. Employers and providers will both be paid £1,000 in two instalments (in months three and 12 of the apprenticeship). 
  • There will be additional support for 19-24 year olds who have previously been in care or who have a Local Authority Education, Health and Care plan.

The maximum cost  for apprenticeships (funded as detailed above) from May 2017 is as follows. When working with your chosen training provider or college, you should negotiate the price for an apprenticeship, ensuring that as well as meeting the apprenticeship standard, the training programmes meet your business need. 

Apprenticeship standard Level Maximum cost
Airside operator 2 £3,000
Aviation ground operative 2 £3,000
Aviation ground specialist 3 £3,000
Aviation operations manager 4 £5,000
Bus & coach engineering technician 3 £18,000
Road transport engineering manager 4 £9,000
Heavy vehicle service & maintenance technician 3 £18,000
Commis chef 2 £9,000
Chef de partie 3 £9,000
Senior chef culinary arts - withdrawn    
Senior chef production cooking 3 £5,000
Hospitality team member 2 £5,000
Hospitality supervisor 3 £5,000
Hospitality manager 4 £6,000
Retailer 2 £5,000
Retail team leader 3 £5,000
Retail manager 4 £6,000
Travel consultant 3 £9,000



How to prepare your business for the new apprenticeships

Ready to benefit from the new apprenticeships and want to know what to do next? Find out what steps you should follow to get your business apprenticeship ready.

Find out more