Question

To ask the Secretary of State for Business, Innovation and Skills, what the average cost to a company is of hiring an apprentice.

The cost of hiring an apprentice is dependent upon a number of factors. Apprenticeships are real jobs and employers pay the apprentice’s wage. This must be at least the Apprentice National Minimum rate, currently £2.78 per hour (£3.30 from October 2015) for those aged under 19 and anyone in their first year. Most employers pay more than the apprenticeship minimum wage. In 2014, the average gross hourly pay received by apprentices in England was £6.31.

Government pays 100% of the training costs for apprentices aged 16-18 and up to 50% for apprentices aged 19+ (depending on additional factors) with employers contributing the rest. The cost of training is determined on the level and duration of the apprenticeship framework.

The Apprenticeship Grant for Employers (AGE) provides small businesses (with fewer than 50 employees) a £1,500 per apprentice incentive payment for up to 5 new apprentices aged 16-24. AGE is available until December 2015.