National training provider Lifetime, which offers a range of apprenticeships designed for the hospitality sector, says the changes to the scheme, which offers £1,500 grants to employers of apprentices, will broaden the scope of apprenticeships for businesses that did not previously qualify.
Alex Khan, Lifetime’s chief executive, said: “We welcome the changes announced by the Government which will make AGE relevant to mid-sized businesses including hospitality operators who have not been able to participate.
“The changes also mean that a company can receive grants for employing a greater number of apprentices, up to ten aged 16-24, which is also a positive development in terms of addressing the pressing challenge of high youth unemployment.”
Lifetime is one of the training providers working on behalf of the National Apprenticeship Service (NAS) to administer the scheme and provide financial support to companies that offer employment and training through an apprenticeship to those aged 16-24.
The four main changes to the AGE scheme are:
* Employers will receive the full amount of £1,500 13 weeks after the apprentice starts instead of two instalments of £750 after eight and 52 weeks respectively.
* It will be open to mid-sized businesses with up to 1,000 employees, although at least 50% of the grants (20,000 of the 40,000 grants available) should still be targeted at small and medium enterprises (SMEs) employing no more than 250 employees.
* There will be an increase in the number of grants a single employer can claim to 10 compared with the current limit of three.
* The ‘three-year rule’ has been relaxed so that an employer will be eligible for AGE funding if they have not employed an apprentice in the last 12 months.