Verify the Facts

Apprenticeship Grants, Incentives & Employer Savings

Example Scenario

An 18-year-old apprentice, working 40 hours per week on a 2-year construction programme, can generate up to £14,975.60 in grants, incentives, and savings for your business.

CITB Apprenticeship Grants

Eligible employers can access funding through the CITB Apprenticeship Grants Scheme, including:

  • Attendance Grant: £2,500 per annum
  • Achievement Grant: £3,500 on successful completion of the apprenticeship


Full details can be found at:

https://www.citb.co.uk/levy-grants-and-funding/grants-and-funding/apprenticeship-grants/england-apprenticeship-grants/

Total CITB support: Up to £8,500

REMEMBER ACE Training can help introduce your business to the relevant CITB contact to get started.

Government Employer Incentive

Employers can also receive an additional £1,000 government incentive for taking on an eligible apprentice.

Full details can be found at:
https://www.gov.uk/employing-an-apprentice/get-funding

Wage Rates & National Insurance Savings

Apprentice minimum wage rates (as of current guidance):

  • Year 1: £7.55 per hour → £15,704 annually
  • Year 2: £10 per hour → £20,800 annually (as the apprentice is aged 19 and no longer in the first year of their apprenticeship)


National Minimum Wage information can be found at:
https://www.gov.uk/national-minimum-wage-rates

National Insurance (NI) exemption:

  • Employers pay no NI contributions on wages paid to apprentices under the age of 25.
  • This equates to a gross saving of 15%, or £5,475.60 over two years compared to a non-apprentice.


Full guidance on NI exemptions can be found at:
https://www.gov.uk/government/publications/national-insurance-contributions-for-under-25s-employer-guide/paying-employer-national-insurance-contributions-for-apprentices-under-25

Total Potential Savings

SourceAmount
CITB Grants£8,500
Government Incentive£1,000
Employers’ NI Savings£5,475.60
Total£14,975.60

Additional Potential Savings

If you choose to pay the apprentice minimum wage (£7.55/hour) rather than £10/hour for the full two years, your business could save an additional £5,096 in wages.

Invest in Your Future Workforce

By taking on an apprentice, you are not only saving money, you are investing in skilled talent, strengthening your team and supporting the future of the construction industry.