Federation of Small Businesses calls for more support for apprentices

The Federation of Small Businesses (FSB) has set out new proposals that it believes, if adopted by the Government, would get more apprentices into work, arguing that such placements are a “central plank to tackling youth unemployment”.

The proposals have been released ahead of a Government meeting on employing young people due to be held tomorrow, Wednesday 29th July.

The FSB argues that under the present system, ‘micro firms’ struggle with the administrative burden of setting up apprenticeships. It has called for higher wages for apprentices from £95 to £123 per week to increase the incentive to complete an apprenticeship. The FSB also proposes a job service scheme to link up apprentices with firms and job offers. Other proposals include redirecting funds for training to the very smallest firms, and a financial incentive for firms that take on an apprentice.

John Wright, Federation of Small Businesses National Chairman said:

“The majority of small firms would like to take on an apprentice but are put off by the administration involved, and the lack of financial support. The Government must make it easier for the smallest firms to create apprenticeships and should put in place a Group Apprenticeship Programme to bring employers and apprentices together.

“Funds from the Government’s Train to Gain scheme in England must also be ring-fenced for the smallest firms, to ensure they are able to get the funding they need to train and support an apprentice.”

“In a survey of our members, 82 per cent said they would be in favour of an increase in the minimum wage for apprentices, which would give them more of an incentive to complete the traineeship and give employers a higher chance of serious applicants for the position. Small businesses are eager to do their bit and to take on new employees, but the Government must step up and help them to tackle the problem of unemployment.”