Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps he is taking to encourage small and medium sized businesses to retain apprentices once they complete their apprenticeship.

Answered by Andrew Western - Parliamentary Under-Secretary (Department for Work and Pensions)

Apprenticeships help give small and medium sized businesses (SMEs) the skills they need to grow, enabling them to fill vacancies, train their workforces and fill skills gaps. Retaining apprentices after completion enables smaller employers to maximise the return on their investment in training which includes the need to release their apprentices for off-the-job training.

The Government encourages small and medium-sized businesses to retain apprentices through targeted financial incentives and employer support. Employers of all sizes can receive up to £2,000 for taking on foundation apprentices, with the final payment made only if the apprentice progresses to a further apprenticeship with the same employer within 6 months. For non-levy paying employers (who are predominantly SMEs), we are introducing a new hiring grant, worth £2,000, to take on 16–24-year-old apprentices as new employees. Payments are made in instalments to support retention and/or progression of apprentices.

The government also facilitates and funds the Apprenticeship Ambassador Network (AAN), made up of around 3,000 employers and apprentices across nine regional networks, which provides mentoring and peer support to help smaller businesses recruit and retain apprentices.

Many apprentices will remain with their employer following their apprenticeship and 94% of apprentices who achieve their apprenticeship go into work or further training, with the majority in sustained employment.