Cable offers cash incentive to take on apprentices
Published: 18 November 2011
The Government is making it easier for small firms to take on apprentices by providing financial incentives and slashing red tape.
To encourage thousands of small firms to hire a young apprentice aged 16-24, the Government will offer employers an incentive payment of up to £1,500, Business Secretary Vince Cable announced this week.
An initial payment will be made two months after the individual has started their apprenticeship, with the balance paid after the training has been completed and the apprentice has progressed into sustainable employment.
The process of hiring young people will also be made quicker and easier. The National Apprenticeships Service and training providers will be required to ensure every employer is able to advertise a vacancy within just one month of deciding to take on an apprentice.
Health and safety requirements will also be streamlined, with no new demands on employers already meeting national standards.
Mr Cable said: "Apprenticeships are proven to boost the life chance 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."
Federation of Small Businesses national chairman John Walker commented: "We very much welcome the action the Government is taking on apprenticeships. In particular it is good news that businesses will receive an incentive payment to help them with the demands of taking on an apprentice. A third of businesses responding to an FSB survey said this would encourage them to take an apprentice on and a rebalancing of current funding to provide this is something we have called for, for some time. With youth unemployment reaching almost a million, initiatives like this will help the smallest of firms to take on young people. Nevertheless there remains a need for a continued focus on helping small businesses take on apprentices and the barriers they face in doing so."