As a business owner, it’s important to be aware of the different government funding options that are available to you. The government offers various different types of funding for employers ranging from apprenticeships to skills boot camps.
By seeking out funding for employers, you’re taking advantage of an extremely cost-effective way to grow your business and improve your employees’ skillset.
The majority of businesses that apply for funding are small and medium-sized enterprises (SMEs). In fact, a survey carried out in 2019 by a British Business Bank found that 44% of SMEs applied for some kind of external funding in the three years previous.
The ‘Plan for Jobs’ is a £500 million government-funded scheme. It offers a range of government programmes that are available for employers who are thinking about hiring employees, offering work experience or upskilling existing staff.
Let’s take a look at some of the available funding options for employers in the UK.
Funding for Employers: Traineeships
Traineeships are aimed at 16-24-year-olds. The idea is to prepare them for apprenticeship or employment roles within the business. Essentially, a traineeship is a skills development programme which includes a work placement. They generally last less than 6 months but can be up to 1 year long. Wages are optional but recommended e.g. to cover travel expenses, food, etc.
As a business, you must offer trainees a minimum of 70 hours of high-quality, safe and meaningful training.
Benefits include being able to design your own training programme and the chance to build a loyal and talented workforce who understands how your business runs. On top of that, you have the ability to increase capacity and productivity whilst keeping costs to a minimum.
Employers are eligible for £1,000 per placement. There can be a maximum of 10 incentive payments per employer, per region).
Funding for Employers: Apprenticeship Funding For Employers
Employers can apply for help from the government to pay for apprenticeship training.
An apprenticeship is a type of job that combines practical on-the-job skills training with off-site studying related to the job. They are available from entry-level up to master’s level equivalent. Employees get hands-on training on the skills and knowledge necessary for the job. Aditionally, they receive a salary from their employer which must be a minimum of £4.81/hour
Usually, it works out as 80% working and 20% studying in a college, an Institute of Technology or even in the workplace.
There are many benefits of an apprenticeship for your business:
- Apprentices are highly likely to stay on with their employer after the apprenticeship is over
- Employers get a fresh perspective and the chance to train young talent
- Work productivity increases with motivated new hires
The financial incentives available to employers were announced in the Plan for Jobs expansion. Businesses can apply for a new payment of £3,000 for each apprentice they hire as a new employee. For more information on apprenticeship funding for employers, check out Employing an Apprentice and gov.uk.
Funding for Employers: Industry Placements – T Levels
T Levels are a 45-day course designed for 16 to 19-year-olds. This new 2-year qualification is equivalent to 3 A levels. It’s beneficial to businesses who may be looking for some extra help on projects, who may want to hire a young person so that they can gain work experience or who want to scout young talent entering the industry. There are no costs involved for the employer. Wages are also optional but recommended to cover travel expenses, food, etc.
Industry placements are beneficial for businesses as they provide them with an ideal solution for entry-level skills. They also mean that businesses can avoid recruitment costs as they’ll be working alongside local schools and colleges.
Employers can claim £1,000 for each T Level student they take on until July 2022.
Funding for Employers: Knowledge Transfer Partnership
Knowledge Transfer Partnerships (KTPs) bring together businesses with the UK’s best knowledge bases to push innovation projects. It is one of the UK’s longest-running and largest graduate employment schemes connecting universities, graduates and businesses.
As an employer, you’ll link up with the academic or research institution (the ‘knowledge base’), which will then recruit a suitable graduate, known as a KTP associate. The university employs them directly but they work for the company on projects, helping to increase productivity and improve business performance. Projects can last anywhere from 1 to 3 years, depending on the needs of the business.
KTP usually pays 67% of project costs for SMEs and 50% of costs for large businesses. Businesses must fund the rest of the project costs.
Skills Bootcamps
Skills Bootcamps are training courses designed for existing or potential employees. Basically, these courses fast-track skills development, helping your business find talent with the specialised skills you need. Skills Bootcamps offer a flexible learning option for employees or job seekers and are available for those over 19.
The cost of the training courses depends on the size of your business. However, if the trainee is not currently employed by your business, the employer doesn’t pay anything.
Skills Bootcamps are significantly beneficial to employers and job seekers alike. As an employer, you can plug specific skills gaps in your business. On the other hand, job seekers will learn a specialised skillset. What’s more, they are guaranteed an interview at the end of their training.
Key Takeaways
As you can see, there are plenty of options out there for employers looking for funding. Not only are there significant cost benefits for your business, but there is a wide array of other advantages for employers too. For more detailed information on each of the funding options mentioned above, refer to the Government’s website.
Want to know more? Developing a Student has a wealth of useful resources for employers seeking funding. You’ll find lots of resources, including the benefits of hiring students and tips for attracting graduates. Be sure to also check out our services page for information on advertising on our specialist jobs board, creating a company profile, and more.
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