Letter to the editor: Apprentices, you’re hired!
[Re: Government to fully fund apprenticeships for small firms, Rishi Sunak to announce, 18 Mar]
Removing the five per cent co-investment payments for SMEs that hire apprentices under the age of 22 is a step in the right direction. But co-investment contributions for those over 22 still exist and add significantly to operational costs for SMEs. The government should remove these payments altogether to allow more SMEs to hire apprentices.
Scrapping co-investment fees will also boost the uptake of apprenticeships for people of all ages and backgrounds, not just those below the age of 22. Providing opportunities for all ages and skill levels will create new channels to build and attract a more diverse talent pool, supporting employers even further.
The removal of co-investment fees will support training providers too, who currently miss out on their 20 per cent completion payment if SMEs fail to pay their five per cent contribution when inflation and delivery costs are high.
The UK is in the midst of a skills shortage. The government can go further to support SMEs by increasing the apprenticeship funding bands to cover the extra costs needed to support young people. Committing extra investment for apprenticeships and improving access to programmes for young people will also make it easier for smaller employers to hire apprentices too.
Nichola Hay MBE, BPP