
Taking on an apprentice: Costs, wages and support
Taking on an apprentice: Costs, wages and support
In her latest article, Samarah Dawson, Business Development Manager at specialist furniture and interiors apprenticeship training provider, WEBS Training, is back talking all aspects of apprenticeships, this week talking the cost of taking on an apprentice.
I’m back talking all aspects of apprenticeships, and this week I’m talking money – the pounds and pence of taking on an apprentice.
Each apprenticeship standard has a course cost – Level 2 Wood Machinist, offered by WEBS Training, for example is £14,000.
The government will subsidise this, covering 95% of the course cost for any small to medium business with an annual wage bill of less than £3 million – so most
businesses.
Using Level 2 Wood Machinist as an example, the employer would pay £700 towards the course cost.
However, the government will cover 100% of the course cost for an apprentice aged 16-24 (increased from ages 16-21 on 1 August 2026) at the point they are signed onto their apprenticeship.
If you are a large business with a wage bill of over £3 million then you will be paying an apprenticeship levy – the money you pay for this can be used on apprenticeship course costs.
Gifting funds to small businesses
A large business can give funds from their levy pot to smaller businesses to cover course costs.
If you are a small company who completes work for a large organisation, you could explore whether they could gift you the 5% remaining course cost if you are employing an older apprentice – provided you have the working relationship to approach this of course!
Wage costs
As mentioned in our previous article which you can view here: Why employers matter in apprenticeship success – The Joinery Network, your apprentice is a paid employee, where their wage is the most significant cost of taking on an apprentice.
As an employer, you would still be responsible for other contributions such as a pension if age applicable.
However, there is national insurance relief for employers who take on an apprentice aged 25 or under, under a £52k wage threshold.
Apprentice wage is £8 an hour for the first year of their course, which then increases to national minimum wage for the apprentice’s age. You can choose to pay above this if you wish.
Number crunching:
- Example wage bill for the first year based on 37.5 hours a week (which includes training time) £15,600
- Based on the above, the National Insurance Contribution that would be saved for an apprentice aged under 25 is £1,590 per year.
- Apprenticeship wage is 63% of minimum wage. So even though you are paying the apprentice for the 20% of time they are in training and not working, it is still more value than a full-time minimum wage employee for the first year.
If you cannot afford an additional head in your business, someone already in your organisation – such as a labourer – can be upskilled by putting them on an apprenticeship.
Additional costs
Depending on where the training provider for the apprenticeship is, there may be travel and accommodation costs for your apprentice to attend training.
Bonuses and support
Employers receive a £1000 bonus for taking on an apprentice aged 16-18 – £500 paid after 90 days and £500 paid after a year.
If you are a joiner/woodworker for the construction industry and pay into a CITB levy, then CITB offer a range of grants towards travel, accommodation and other things – find out more here: https://www.citb.co.uk/funding-support/grants/apprenticeship-grants
There are additional bonuses being launched later in the year which I will share more details in a future article.
I get it… it’s a lot to take in! If you would like any more information on any of the above, please contact WEBS Training on info@webstraining.com
Now you know more about the costs, stay with us for the next instalment – looking at whether an apprentice is the right thing for your business.
For more information about WEBS Training, visit: Apprenticeships Nottingham – Webs Training
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