Government scraps employer co-investment requirement for 16-21 year olds

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The government have just recently announced a change to the funding rules from 1st April, removing the need for non-levy employers to make a 5% contribution to the cost of training for apprentices aged between 16 and 21.

This extends upon the previous requirements which had required micro and SME employers to make a contribution to costs for those aged 19 and over, this revision potentially saving many hundreds of pounds for businesses engaging with apprenticeship training providers.

It is claimed that the big change will lead to an extra 20,000 apprenticeships being created across the country with Rishi Sunak, Prime Minster, stating “Whether it’s breaking down barriers and red tape for small businesses, helping businesses hire more young people into apprenticeships and skilled jobs or empowering women to start up their own businesses – this government is sticking to the plan and leaving no stone unturned to make the UK the best place to do business.”

The move will save employers between £200 and £500 when recruiting new or existing 19-21 year old staff members onto apprenticeship training programmes.

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