News

August 31, 2012

Holt report prompts government action on apprentices for SMEs

The Government is promising to improve the support it gives to small and medium-sized firms who take on apprentices. The move follows the publication of a report by jeweller and social entrepreneur Jason Holt, commissioned by the government.

The report highlights a lack of awareness among small businesses about the benefits of taking on apprentices and how to recruit and train them.

In response, the skills minister John Hayes has outlined new measures to help SMEs take on apprentices. The Government has undertaken to do the following:

• Work with SMEs advisers, such as lawyers and accountants, to encourage them to promote apprenticeships to their SME customers;
• Provide better information on the availability of training;
• Improve the performance of training providers to SMEs by agreeing standards;
• Improve the Apprenticeship Grant for Employers by making it simpler and more accessible to more employers.

At present, the Apprenticeship Grant for Employers provides up to 40,000 grants of £1,500 to encourage and support employers taking on a young apprentice aged 16 to 24. Changes to the £1,500 Grant will include delivering it in a single payment, rather than the current two. Now employers will be able to claim grants for up to ten apprentices, and the scheme will be opened to employers who have not hired an apprentice in the past year. The grant will also be made available to businesses with up to 1,000 employees.

Jason Holt said: "Whilst apprenticeships offer undoubted growth opportunities for businesses, not enough SMEs are taking advantage. This is because they have an outdated view of apprenticeships, are often in the dark, and frequently do not receive the specific training provision their apprentices need. My recommendations are intended to address these issues — with Government, employers and providers all playing a part."

Business secretary Vince Cable said: "Only a small minority of SMEs currently employ apprentices. Many of the rest are missing out on an effective way of growing and up-skilling their businesses. We hope that the measures announced today will make a difference by raising awareness of the benefits of apprenticeships amongst SMEs and making it as easy as possible for these businesses to take on an apprentice."