Companies set to benefit from Plan for Jobs payments
The Manufacturing Technology Centre is urging companies to act quickly to take advantage of the Government’s new scheme to pay bonuses to employers who take on apprentices.
The MTC, through MTC Apprenticeships based at the Advanced Manufacturing Training Centre in Coventry, is offering advice to companies who want to access the Government’s Plan for Jobs payments, aimed at generating employment for young people and helping companies attract the most talented youngsters.
As part of the Chancellor’s plans to aid the recovery of the UK economy after COVID-19, financial incentives are available to support employers who create new jobs for young people, incentivising workforce growth and helping to prevent high levels of unemployment.
Announcing the support package, Chancellor Rishi Sunak said, “We know apprenticeships work. Ninety-one per cent of apprentices stay in work or go on to further training. For the next six months, we are going to pay employers to create new apprenticeships.”
The plans focus on generating employment opportunities for young people, and provide £2,000 to firms for each new 16-24 year-old apprentice while those taking on apprentices aged 25 and over will receive £1,500. The Treasury has confirmed that these payments will be in addition to the existing £1,000 incentive the government provides for new 16-18 year-old apprentices.
Apprenticeships already provide a cost effective way to attract enthusiastic, motivated, young talent, with 75 per cent of employers agreeing that taking on apprentices has lowered their recruitment costs, according to recent figures from the National Apprenticeship Service.
After receiving a record number of applications this year, the team at MTC Apprenticeships is primed to support manufacturers, with a talented pool of pre-screened candidates ready to be matched with prospective employers.
David Hughes, managing director of the Advanced Manufacturing Training Centre, said that with the bonus scheme in place until January 2021 there has never been a better time for businesses to build their own talent and invest in young people through an apprenticeship. He believes apprenticeships are exactly what manufacturing industry needs to fill the high tech jobs of the future.
“Our programme produces apprentices capable of rapidly adding value to their employers. The new apprentice bonus scheme is a great incentive which can be used alongside other funding opportunities, making apprenticeships an incredibly cost-effective way for business to future proof their workforces by creating the next generation of talented engineers.”
Businesses can leverage other funding opportunities to finance apprentice employment in addition to the new bonus. UK employers with a payroll of over £3million can use their apprenticeship levy to cover training costs, while eligible smaller businesses can access a £1million fund that has been created through an exclusive partnership between MTC Apprenticeships and Lloyds Bank.
MTC Apprenticeships can support businesses to access funding, use levy funds, recruit candidates, and develop existing employees. More information is available by contacting employers@the-mtc.org or calling 024 7670 1770.