You’re hired! Value of apprenticeships

Image: © Julien Eichinger / Adobe Stock

Alan Sugar and Donald Trump popularised the terms “apprentice” and “you’re fired”, but much more to the concept exists. Implemented well – with, of course, willing candidates – apprenticeships are a great entrée into the worlds of learning and work.

 

Defining the Government's scheme

Before going further, we need to define the term “apprenticeship”. As far as the Government is concerned, to qualify as officially sanctioned a scheme must be open to anyone aged 16 and older and it should run for a fixed term between one to five years, or until a level of qualification is reached. Apprentices must spend a minimum of 20 per cent of their time training and must be paid the national minimum wage.

Even though courses have existed for quite some time, back in 2017 the Government changed the way that apprenticeship funding works by introducing the apprenticeship levy, a co-investment rate to support employers that do not pay the levy, and a National Apprenticeship Service. Mark Stevens, a senior associate at law firm VWV, says of the levy that it “effectively created a pot of funding for employers to be able to create apprenticeship roles within their organisations”.

But while the levy is a cost on employers, Mr Stevens estimates that fewer than two per cent of UK employers actually pay it as the levy is only charged at a rate of 0.5 per cent on annual pay bills in excess of £3 million. In “exchange” for the levy, however, each employer receives an allowance of £15,000 to offset against its payment.

This minor detail is held in an annual state of flux since, as Mr Stevens explains, “new guidance is published each year for levy paying employers, and so working out which terms and conditions apply depends on what year the apprentice started their employment”.

But another incentive exists – and it’s worth up to £3,000 to an employer when taking on an apprentice. Called “the hire a new apprentice payment”, it offers support to employers regardless of whether they pay the levy.

Under the scheme – which was announced in July 2020, from the start of August 2020 until the end of September 2021 (originally to the end of January 2021), unless extended – the Government will pay employers to hire new apprentices £3,000 per individual. This is in addition to the existing £1,000 payment that was already in place for new 16 to 18-year-old apprentices and those aged younger than 25.

It’s of note that the incentive can cover any of the costs associated with supporting a new apprentice in his or her workplace, including facilities, uniforms, travel and wages. The payments come in two instalments after the apprentice has completed 90 days and 365 days of learning as confirmed by his or her training provider.

COVID-19 got in the way

It should be no surprise that Covid-19 has made life very difficult for anyone in the world of employment.

The young, in particular, have been hit badly. The Government reacted with the Kickstart Scheme. As highlighted by Mr Stevens, “it gives funding to employers specifically to create work placements for 16 to 24-year‑olds who are on Universal Credit. Each employer is able to apply for funding, which covers 100 per cent of the national minimum wage for those on the programme (or national living wage depending on the age of the apprentice) for 25 hours per week for a total of six months”.

The scheme runs to the end of December 2021, and employers can get funding to cover employer National Insurance contributions and employer minimum pension automatic enrolment contributions. A £1,500 grant is also available for start-up costs.

A panacea to get the young into business

Naturally, the opportunity to earn an income while studying and acquiring new skills should be a good incentive for getting an individual into work. But the financial implications of the present economic climate and the current incentives are likely to be key for employers – particularly with the challenging circumstances arising from the Covid-19 pandemic.

The point for Mr Stevens is that a bigger picture exists – “that the opportunity to train a new generation of skilled workers is clearly important for the wider economy”.

Many describe apprenticeships as an excellent opportunity to people of all ages to develop and enhance new and existing skills. Good programmes can provide a clear career path and progression routes, and more often than not, these are long-term and sustainable roles.

And unlike traditional education routes, apprenticeships are very much vocationally designed so that everything that is taught is relevant to an individual’s job role.

So, with a whole host of Government-based initiatives – apprenticeships, traineeships, and the Kickstart scheme; all for slightly different audiences – it can be tough for employers to establish which is the best fit for their workforce needs.

More effective apprenticeships

All of this leads to a question – can apprenticeships be made more effective?

Possibly.

Mr Stevens takes the line that apprenticeships do need to be made more accessible and introduced across a wider variety of sectors. But at the same time, he says employers must be transparent about what apprenticeships they are offering and how they are using levy funding.

They also should document the apprenticeship and the expectations around the role so that all understand the nature of the relationship from the very start.

He also thinks that dealing with post-Brexit issues and the continuing impact of the pandemic creating more uncertainty, “employers will need to carefully manage their workforces, while young people are increasingly having to use their initiative as to how they can make themselves stand out to employers”.

In summary

It is undeniable that the profession, and the economy for that matter, needs a pipeline of skilled workers – and executed well, an apprenticeship and allied programmes could well produce the leaders that firms need for the future, and at low or no initial cost.

Examples in the vet profession

Vets4Pets offers a range of exciting apprenticeship opportunities for veterinary care assistants and veterinary nurses. The company has apprentices developing their careers via the Level 2 Veterinary Care Assistant Apprenticeship and Level 3 Veterinary Nurse Apprenticeship, where they gain the skills, knowledge and behaviours necessary to become a registered veterinary nurse.

The company also has a range of non-clinical apprenticeships in areas from customer service to IT.

PDSA also offers apprenticeships, with a view towards being part of a team that supports the charity’s pet hospital veterinary nurses and veterinary surgeons. Apprentices will study and learn, as well as taking care of the well‑being of pets, assisting with animal handling, working at reception and encouraging financial contributions from clients.

• This article first appeared in Vet Times (Volume 51, Issue 36, Pages 21-22).