Funding

Apprenticeships funding

Funding for the training element of an apprenticeship can be provided through the National Apprenticeship Service.

• For 16-18 year olds the full cost of training is covered by NAS.
• For apprentices aged 19+ there is usually 50% of the training costs available from NAS.

In most cases this is paid directly to the organisation providing the training i.e. a college or training provider. The Department for Business Innovation and Skills recently announced a boost for adult apprenticeships of up to £250m by 2014-15.

From 2013-14 there will be significant changes to the funding for apprenticeships, in some cases requiring the apprentice themselves to pay for their training through an income-contingent loan.

Funding will be structured to encourage Level 3 qualifications, with learners aged 25 and above expected to contribute 50% of the cost of their learning through a loan. This will be a significant change to the current model where apprentices are not expected to contribute to the costs of their training.

It was announced in November 2011 that a fund for employers with under 50 employees will be eligible for an incentive payment, to help them to employ an apprentice. This will be available from April 2012.

Future Jobs Fund

The Future Jobs Fund (FJF) aimed to create 150,000 additional jobs, primarily aimed at 18-24 year olds who have been out of work for nearly a year to deliver real benefits to communities.

Many boroughs were successful in winning Future Jobs Fund (FJF) and some have used this to encourage apprenticeships in their own authority and the wider borough.

Here are just some of the ways London boroughs used their Future Jobs Fund:

• Greenwich created 10 internal apprenticeships with the FJF funding; helping towards their apprenticeships and NEET targets. This programme employed local people to work as Environmental workers and supervisors; Cleansweep, Community Safety, Ground Maintenance and Neighbourhood Services.  
• As part of Redbridge's Future Jobs Fund programme, led by East Tenders, an arm of Redbridge CVS, the council created jobs lasting six months for unemployed 18 - 24 year olds, with trainnes in Culture Sport and Community Learning in administration and Olympics, Paralympics and youth arts activities. The young people accessed NVQ training through the Train to Gain programme and had the opportunity to apply for apprenticeships and other positions in the council at the end of the six month period.