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Financing Apprenticeships DB TopBar

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  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
  • Financing instruments
  • Cross-country overview
  • Cross-country comparison
  • Scope and glossary
  • Feedback
  • Advanced search
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Database on financing apprenticeships in the EU

Financing Apprenticeships DB

  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
  • Financing instruments
  • Cross-country overview
  • Cross-country comparison
  • Scope and glossary
  • Feedback
  • Advanced search

Degree level apprenticeships (England)

PDF Version
Financing of apprenticeship scheme
Scheme name
Degree level apprenticeships (England)
Country
United Kingdom
Duration

1-6 years. Typically 3-5 years for a Bachelor’s degree.

Apprentices remuneration - characteristics

Type: wage paid by company; fixed amount per month
Remuneration setting: centrally, share of the national minimum wage
Coverage: on- and off-the-job training
Variation(s): by the year of apprenticeship and age of the apprentice

Apprentices remuneration - amount

Level in PPS per year (average): EUR 9,615.56 (calculated on the basis of the data for 3 selected occupations, see below)

Remuneration (annual gross income) in 3 selected occupations (EUR):
hairdresser: nap
motor mechanic: 1st year: 7,558.20; 2nd: 12,337.65; 3rd: 13,552.50; 4th: 13,552.50
bricklayer: 1st year: 7,558.20; 2nd: 12,337.65; 3rd: 13,552.50; 4th: 13,552.50

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These figures are for a person aged 19 at the start of the apprenticeship who embarks on a four-year degree apprenticeship. They assume that the apprentice works 37.5 hours per week. Degree apprenticeships are available for automotive engineering and construction but not for hairdressing. Rates are the same across the selected occupations.

Remuneration for age groups, average annual gross income:
15-19 year olds and under: EUR 5.15 per hour (ranges from EUR 4.56 for under 18 to EUR 6.33 for 19 year olds) - the apprentice rate in the first year is taken out of the calculation, otherwise the average national minimum wage for 25 year olds is lower than for the 19-24 year olds)
20-24: EUR 7.58 per hour (ranges from EUR 6.33per hour at ages 18-20 to EUR 7.92 per hour at ages 21-24)
25 year olds and above: EUR 8.21 per hour

Time foreseen for on-the job-training

More than 50% of the overall duration of apprenticeship

Provisional (informal training): Regulation specifies that at least 20% of the apprentice’s time in employment must be spent on off-the-job training. This is likely to be more in science, engineering and technology based courses. There is no specification on the number of hours to be spent on on-the-job training, like for intermediate and advanced apprenticeships. On-the job-or work-based learning will occur in the remainder of the time as apprentice will apply what they have learnt. It may be up to 80% of the apprentice’s time in employment, particularly if the apprenticeship foresees different work-based placements. Taking into account holidays that would equate to up to maximum of around 1440 hour - actual figures on the number of hours for on-the-job training are not available.

Apprentice social insurance

Paid by: the employer and the apprentice
Rights: Health, pension, unemployment, annual leave, maternity leave, if applicable.

Financing on-the-job training

Apprentice remuneration is paid by employers. In certain cases, national insurance contributions are paid by the state (see Abolition of employer national insurance contributions for apprentices under the age of 21 and 25 respectively (Reduction of secondary Class 1 NICs for apprentices)

Financing of the scheme overall

Degree level Apprenticeships include both SASE Apprenticeship Frameworks and Apprenticeship Standards. Apprenticeship Frameworks are currently being phased out and should be replaced by Apprenticeship Standards by 2020. At the time of this research, most apprentices in Degree level Apprenticeshop were predominantly on Apprenticeship Standards.

Apprenticeship Frameworks and Apprenticeship Standards attract different forms of co-funding (see grant for companies '16-18, 19-23, and 24+ and employer contributions; as of 2017: employer co-funding')

As of May 2017 funding has changed again as an Apprenticeship levy was introduced. Funding is now irrespective of whether it is an Apprenticeship Standard or Apprenticeship Framework. Levy payers pay the training in full through the levy. If apprenticeship funding exceeds their levy, different rules apply. For non-levy paying companies the government co-invests 90% of off-the-job training and the employer 10% up to the set funding band limit.
Additional rules and regulations apply.

Illustration: sources of funding and financial flows
Assessment of financing arrangements

It has been argued that the grant system in place until May 2017 was too supply or provider-led. Grants were set by the Skills Funding Agency according to the costs calculated to deliver the training. The training funds were allocated to training providers who promoted their offers. Employers had little or no input into the type of training they may require apart from choosing from a range of apprenticeship frameworks. Although employer-co-funding was in place, some providers may have found ways to offer the training at no charge to the employer (Richards Review, 2011). Others have argued that the funding system encouraged training providers to provide short and low-level apprenticeships (Wolf, 2015)

The new system gives more power to the employer and encourages negotiation of training packages that meet employers’ needs at an agreed price. The state will meet training costs up to a set maximum price, with any price above this limit having to be met solely by the employer.

Contextual information

Statutory minimum wage: EUR 1,447.07 per month (2016, S2), EUR 1,393.4 (2017, S1), EUR 1,413.58 (2017,S2)
Average yearly working time (hours) for a full time job: 1,679.80

More on financing instruments for this scheme

Co-funding for degree apprenticeships
United Kingdom
Grants for companies
Abolition of employer national insurance contributions for apprentices under the age of 21 and 25 respectively (Reduction of secondary Class 1 NICs for apprentices)
United Kingdom
Tax incentives
Apprenticeship levy
United Kingdom
Training funds
On this page:
  • Duration
  • Apprentices remuneration - characteristics
  • Apprentices remuneration - amount
  • Time foreseen for on-the job-training
  • Apprentice social insurance
  • Financing on-the-job training
  • Financing of the scheme overall
  • Illustration: sources of funding and financial flows
  • Assessment of financing arrangements
  • Contextual information
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