In his first major economic speech since the Spring Budget, the Prime Minister has announced a package of reforms to boost local apprentices and small businesses.
From 1 April 2024, the Government will fully fund apprenticeships in small businesses by paying the full cost of training for anyone up to the age of 21, reducing costs and burdens for businesses and delivering more opportunities for young people to kickstart their careers.
The move will remove the need for small employers to meet some of the costs of training and save time and costs for other sponsors of apprenticeships, like further education providers, who currently need to source funding separately from the government and businesses.
From the start of April, the Government will also increase the amount of funding that employers who are paying the apprenticeship levy can pass on to other businesses. Apprenticeships can currently be funded by a levy-paying employer transferring up to 25% of their unused levy to a different employer.
Under the new measures, large employers who pay the apprenticeship levy will be able to transfer up to 50% of their funds to support other businesses, including smaller firms, to take on apprentices.
This is designed to help small and medium-sized businesses to hire more apprentices by reducing costs and enabling more employers to get the skilled workers they need.
The scheme is backed by £60 million of government funding and it is expected to enable up to 20,000 more apprentices.
Commenting on the reforms, local MP, Guy Opperman said:
'Since 2010, I have worked closely with local employers to create over 7000 high-quality apprenticeships in Tynedale and Ponteland.
'These fantastic local businesses, from Berry Global in Haltwhistle, to EGGER in Hexham, and Essity in Prudhoe, all put their faith in talented young people across Northumberland, giving them the opportunities they deserve after they leave school.
'These newly announced reforms are vital to build on the fantastic progress we have made locally. I look forward to marking another 7,000 apprentices created in the near future.'