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So, what is the true cost of an apprenticeship?

There’s no arguing that apprenticeships are good for business. With 76% of employers saying that productivity has improved, can you afford to not be looking at apprenticeships as a viable option for developing your teams?

Even with the outcomes for apprenticeships looking so positive, it is important to think about the true cost of an apprenticeship and what it might mean for your business.

The government has set funding bands for each apprenticeship but knowing the funding cap isn’t the only thing you need to know. Read on to find out the true cost of an apprenticeship:



Contrary to popular belief, the apprenticeship levy cannot be used to pay an apprentice’s wages. The levy funds are to pay for the training delivery element of the apprenticeship. As of January 2020, the minimum wage for an apprentice is £3.90, however, we would recommend that you pay significantly higher than this to make sure you attract and retain the best talent.


With this in mind, you need to make sure you calculate to total wage cost of an apprentice when calculating the overall cost to the business.




In addition to the wage packet for an apprentice, you will need to calculate any additional expenses they may incur. As with any employee, expenses should be reimbursed for any travel outside of their normal workplace, including food, drink and accommodation whilst working away.

Not all apprenticeships will require time away from the apprentice’s place of work, but if they do, the costs cannot be claimed through the apprenticeship levy and therefore must be calculated as an additional cost.


Additional resources


If you are hiring a new apprentice for the first time, you will need to think about any additional resources you may need, such as more in-depth induction manuals and training, computer hardware, desk space etc. 

You also need to think about the additional time your current employees may need to allocate to work with the new hire. It is important to factor this in to make sure you have the capacity to offer sufficient support.

This may sound like a lot of initial investment in both time and money, but the cost of hiring an apprentice will reduce over time as you become more experienced. Your initial investment will stand you in good stead for hiring apprentices in the future and the benefits of having apprentices in your organisation far outweigh the outlay.

If you would like to find out more about how hiring an apprentice can benefit your organisation, get in touch via our contact page today and one of our talented team members will be in touch.