IMI urges clarification over Apprenticeship Grant for employers

The Budget on 19th March 2014 saw George Osborne announce firm backing for apprenticeship schemes – marking real recognition from the Government on the benefits of apprenticeships for employers and jobseekers alike. However Steve Nash, Chief Executive of the Institute of the Motor Industry (IMI) – and long-time advocate of apprenticeships – believes clarification is urgently needed in what this means for the retail motor industry, one of the key areas of opportunity for apprentices.  

“Last Wednesday the Chancellor confirmed that £170 million of additional finance was to be made available for apprenticeships in 2014/15 and 2015/16, for businesses with fewer than 50 employees, to encourage them to take on young apprentices between 16-24 years old” said Steve Nash. “Employers who have not had an apprentice in the last year can receive a grant of up to £1,500 for the first 10 apprentices they employ and with about 80% of the businesses in the retail motor sector fitting into the 50 or under employees category, this could be a fantastic chance to really open up the employment opportunities for young people.

“But there has been no confirmation from the Government as to where these funds are actually going – is it an additional 100,000 apprenticeship places or will the money be allocated to specific sectors, and if so, which?  Clarification is needed urgently.”

The IMI recently published the results of a two year project to prove the value of apprentices in the automotive sector, which provided definitive evidence that vocational training does not have to be a cost-burden to business and can play a vital role in reducing youth unemployment. The research showed that, by the end of their third year, a well-recruited apprentice can generate between 150% and 300% return on investment, based on a £50 hourly charge.  In other words, for every £1 a firm invests, it will see a return of between £1.50 and £3.

“Our research proves that businesses can reap genuine financial rewards from employing young people”, concluded Steve Nash.  “Vince Cable has come out and said that the Government wants to change young people’s thinking and make it the new norm that they either go to university or pick an apprenticeship. That is a fantastic attitude and one that the IMI wholeheartedly supports – if it comes to fruition. However what we now need from the Government is a clear strategy on how – and where – its promised new funding will be delivered.”

Steve Nash is available to provide expert comment on the value of apprenticeships for the UK economy.  He can provide valuable insight into how companies can make the most of apprenticeship schemes and dispel some of the myths surrounding them – particularly in relation to cost and productivity to businesses.

Steve Nash can be contacted direct on 07831 118611 or email at snash@theimi.org.uk or via Wendy Harrison or Dominic Dennis at HSL on 0208 977 9132. Case studies can be sourced via HSL on this number or by emailing dominic@harrisonsadler.com