Thursday, November 7, 2024

A Comprehensive Guide to Construction Apprenticeships for Small Businesses

Construction apprenticeships provide an opportunity for businesses to find and nurture individuals who are enthusiastic about pursuing a career in the industry. 

With on-the-job training and government grants, this guide will explore everything small business owners need to know about employing an apprentice.

Addressing the Persistent Skill Shortages in the Construction Sector

A persistent shortage of skilled labour has challenged small businesses in the construction industry, particularly as they attempt to bounce back from the pandemic. 

Factors such as early retirement, the cost of living crisis, and supply shortages have led to experienced workers leaving the sector.

However, recent changes to the UK’s skill shortage occupation list may make it easier for trades businesses to employ overseas workers. 

The government has added five trades to the list to support businesses in recruiting for roles that are difficult to fill:

• Bricklayers and masons

• Roofers, roof tilers, and slaters

• Carpenters and joiners

• Construction and building trades not elsewhere classified

• Plasterers

This change means that individuals in these trades may find it easier to apply for a UK working visa, as they can now apply for a skilled worker visa, as announced in the recent Budget.

Utilising Construction Apprenticeships to Tackle Talent Scarcity

A study by Vodafone indicates that small businesses are abandoning plans to hire apprentices due to the rising cost of living. 

However, with government funding available, employing an apprentice in the construction or trades sector may offer a solution to workforce development and talent scarcity.

The Construction Industry Training Board (CITB) works to enhance skills development within the industry and connects businesses with potential apprentices. 

The CITB has also recently established a New Entrant Employer Support Team to assist small businesses in navigating the complex process of employing an apprentice. 

The team offers support in finding talent, relevant training, and grants for construction businesses in England.

For more information, email the team at newentrant.team@citb.co.uk. Additional resources and support for employers seeking apprentices include:

Talentview – a free platform designed specifically for construction apprenticeships, which allows businesses to promote their apprenticeship and training opportunities

• Government resources at apprenticeships.gov.uk

Go Construct – a job board for construction apprenticeships and employment opportunities

Exploring the Range of Construction Apprenticeships

Four levels of construction apprenticeships are available, spanning intermediate, advanced, higher, and degree levels. Available roles for apprenticeships may include:

• Quantity surveyor

• Architect

• Bricklayer

• Carpenter

• Dryliner

• Groundworker

• Joiner

Are Grants Available for Hiring an Apprentice?

If your business is registered with the CITB, you may qualify for a grant to hire an apprentice. Grant options include:

• £2,500 per year for attendance and £3,000 per year for achievement

• An additional £2,000 for drylining apprentices

Is Apprenticeship Levy Reform on the Horizon?

The Apprenticeship Levy was implemented to support the funding of new apprenticeship programmes and bolster the workforce. 

Despite this, various industry groups, training providers, and organisations have urged for reforms, arguing that the levy is not as effective as intended. 

Research from City & Guilds reveals that, on average, employers have spent only 55.5% of their levy funding over the past five years.

Businesses with an annual pay bill exceeding £3 million are required to pay the Apprenticeship Levy, which means it is unlikely to impact small businesses. 

The government website can help you determine if you need to pay the Apprenticeship Levy and provide the necessary criteria.

Tapping into Government Funding

For businesses not subject to the Apprenticeship Levy, you will contribute 5% towards the cost of training and assessing your apprentice. The government will cover the remaining 95%, paid directly to the training provider.

You may also qualify for an additional £1,000 to cover other expenses while your apprentice is in the workplace if they are:

• 16 to 18 years old

• 19 to 25 years old with an education, health, and care plan

• 19 to 25 years old and formerly in care

More information about funding for apprenticeships can be found on the government’s website.

The Advantages of Employing an Apprentice

In addition to the financial benefits, there are several reasons why hiring an apprentice can be advantageous for your small business. Key benefits include:

• The ability to train individuals on the job, enabling apprentices to develop skills specific to your business

• Apprentices tend to be highly motivated, eager to learn, and focused on securing long-term employment

• Offering opportunities to young people and supporting the local community can lead to a more loyal and dedicated workforce

By understanding the various aspects of construction apprenticeships, small business owners can make informed decisions about incorporating apprentices into their workforce to address skill shortages and support business growth.

Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.

RELATED ARTICLES

Latest Insights