An apprenticeship scheme is a combination of study and work for people over the age of 16, intended to equip apprentices with the skills and knowledge for a specific job or industry. Businesses, irrespective of size, can recruit an apprentice. The duration of their apprenticeship can range from 12 months to five years, depending on their level.
Figures from the House of Commons show that 761,500 people were in apprenticeships in England during the 2024/25 academic year, an increase from the prior year. Hiring an apprentice is a strategic long-term move, allowing organisations to build a workforce from the ground up. This helps instil proper work habits and align new hires with the company culture from the start.
Benefits of Apprenticeships
The National Apprenticeship Service estimates that employers gain between £2,500 and £18,000 per apprentice. Beyond financial returns, businesses report higher productivity in their existing teams and use these programs to close skills shortages. Green Telecom’s managing director, Steve Hayden, notes the value for smaller firms: “An apprentice is an asset to a small business, they bring fresh ideas to the table and can be trained to fit in with the company.”
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Apprenticeships are divided into different levels, and it’s essential to establish which one is most suitable for your business. The levels include Advanced (level 3, equivalent to 2 A Level passes), Higher (level 4,5,6 and 7, foundation degree and above), and Degree (level 6 and 7, Bachelor’s or Master’s degree). The National Apprenticeship Service provides useful advice on which level to consider on its website.
Foundation apprenticeships serve as an entry point into sectors like construction, digital, engineering, and social care. Operating at level 2, these programs usually last eight months. While open to anyone aged 16-21, they are also available to those aged 22-24 who meet specific criteria.
Setting Up an Apprenticeship Scheme
To set up an apprenticeship scheme, start by deciding what kind of apprenticeship you want to offer, then look at your funding options, create an account, and set your agreement and training templates. You’ll need to find a training provider to work alongside to deliver your apprenticeship scheme, which can be found on the government website. Check what funding is available, as the government will pay 100% of the cost (up to the funding band maximum) on the training of an apprentice if they are aged 15 or under certain conditions.
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You can input company details, PAYE information, and apprentice specifics. This service acts as a portal to a large database, making it the best place to advertise vacancies.
Make an apprenticeship agreement, which details the skill, trade, or occupation that the apprentice will be training for, the name of the apprenticeship they’re working towards, the start and end dates of the apprenticeships, and the amount of training you’ll give them. You’ll also need to sign a training plan with your apprentice, which must include the planned content and schedule for training, what is expected and what is offered by the employer, training provider, and the apprentice, and how to handle queries and complaints.
As an employer, it is your responsibility to draw up an apprenticeship agreement between your business and your employee. You must pay your apprentice no less than the Apprenticeship National Minimum Wage, and ensure that all apprentices receive the same benefits as your other employees. The minimum duration of apprenticeships is 30 hours a week, and apprentices working under 30 hours per week will still be considered apprentices, but their training will be over a longer period.
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Keep in mind that even if you only employ apprentices, you require employers’ liability insurance. For the 2026/27 tax year, the Apprentice Rate applies to those aged 19 and over in their first year, or those who have finished their first year and are entitled to the standard minimum wage for their age.
Apprenticeship units give employees the chance to do short and flexible courses that will give them the knowledge and skills that a small business needs. These units are based on apprenticeships and are based on sectors where there are skills shortages in England, such as AI and construction.
Final Steps to Set Up an Apprenticeship Scheme
To complete the setup of an apprenticeship scheme, create an account on the government website to advertise apprenticeships and give access permissions to relevant people. The government’s apprenticeships service provides a portal to advertise vacancies to its massive database, which is the best place to advertise a vacancy.