Financial incentives offered to SMEs who take on apprentices

Vince Cable, the business secretary, said recently that the coalition intends to remove the red tape that is deterring businesses from hiring apprentices, and give financial incentives to help smaller companies who want to recruit young apprentices.

Cable explained that apprenticeships have been proven to boost the chances of success for young people and are necessary if we are to remain a competitive force on the world stage.

Apprenticeships will continue to be the gold standard in vocational training and if pointless red tape is found to be putting up barriers, the government will strip it away.

The government also intends to look into the quality of apprenticeships to make sure they are of the highest standard. Furthermore, providers of apprenticeships will have to offer GCSE level 2 training in English and Maths.

Employers with up to 50 members of staff will receive up to £1,500 as an incentive to hire apprentices who are aged between 16 and 24. The payment will be made in two instalments, the first coming two months after an apprentice starts training and the balance when the trainee has finished the apprenticeship and moved into sustainable employment.

It will also be easier to take on apprentices and employers will be given help to advertise vacancies within one month of deciding to hire an apprentice.

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