Hiring an Apprentice: A Guide for Tradespeople

Quick Answer: Apprenticeships in England are funded through the Education and Skills Funding Agency (ESFA). Non-levy employers (those with a payroll below £3 million) pay just 5% of training costs — the government covers the remaining 95%. Apprentices are employees; they must be paid at least the Apprentice National Minimum Wage (£6.40/hour in 2024/25) in their first year, rising to the age-appropriate National Minimum Wage from year two. A Level 3 trade apprenticeship typically runs three to four years.

Summary

Taking on an apprentice is one of the most practical decisions a tradesperson can make. You get a trainee worker who grows into a skilled pair of hands tailored to your way of working — and the government pays the bulk of the training cost. For trades facing a serious skills shortage (plumbing, electrical installation, and gas engineering are all in shortage occupation territory), training your own is often more reliable than recruiting in the open market.

The apprenticeship system was substantially reformed in England from 2016 onwards. The old framework apprenticeships were replaced by Apprenticeship Standards, which are employer-led specifications developed by trailblazer groups of industry employers. The result is a more rigorous, trade-specific qualification that aligns with real-world competency expectations. A Level 3 Plumbing and Domestic Heating Technician, for example, is assessed against standards written by the plumbing industry itself, with an independent End Point Assessment at the end of the programme.

Scotland operates a different system — Modern Apprenticeships (MAs) funded through Skills Development Scotland — with different standards, funding bodies, and qualification frameworks. This guide covers England in detail, with a note on Scotland and Wales at the close.

Key Facts

• Apprenticeship levels — Level 2 (Operative/Intermediate) and Level 3 (Craftsperson/Advanced) are the main routes for construction and building services trades
• Typical duration — 3 to 4 years for a Level 3 construction trade; 18 months to 2 years for some Level 2 standards
• Off-the-job training — minimum 20% of contracted working hours must be designated off-the-job training
• End Point Assessment (EPA) — an independent assessment at the end of the programme; the apprentice cannot be certificated without passing EPA
• Levy-paying employers — those with a UK payroll above £3 million pay the Apprenticeship Levy (0.5% of payroll above £3m) and access funds via the Digital Apprenticeship Service
• Non-levy employers — payroll below £3 million; pay 5% co-investment, government funds 95%
• Maximum funding per apprentice — set per standard by ESFA; for construction trades typically £15,000–£27,000 over the programme
• Apprentice wage Year 1 — £6.40/hour (National Minimum Wage — Apprentice Rate, April 2024); applies to all apprentices in their first year regardless of age
• Apprentice wage Year 2+ — the age-appropriate National Minimum Wage applies; for an 18-year-old that was £8.60/hour in 2024/25
• CITB levy — if you are a construction employer, you pay a CITB levy and can claim CITB grants to offset apprenticeship and training costs
• Training provider — you must use an approved training provider (Further Education college, Group Training Association, or private provider on the ESFA Register of Apprenticeship Training Providers)
• Employer responsibilities — paid employment contract, designated mentor, facilitation of off-the-job training, 20% time for training, review meetings
• Tools and PPE — the employer must provide all tools and PPE the apprentice needs during training; these costs are not normally covered by the training funding
• Duration of employment — an apprentice is an employee from day one; standard employment law applies including unfair dismissal protections after two years

Quick Reference Table

Funding bands correct as of 2024/25. Check ESFA for current values.

Detailed Guidance

Understanding Apprenticeship Standards

Each Apprenticeship Standard is a document that sets out the knowledge, skills, and behaviours an apprentice must demonstrate by the end of their programme. Standards are trade-specific and developed by employer trailblazer groups, meaning the plumbing standard was written by plumbing employers, the electrical standard by electrical employers, and so on.

The key documents for each standard are:

• The Standard — the headline description of what the apprentice will be able to do
• The Assessment Plan — specifies how the End Point Assessment works, who conducts it, and what the apprentice must demonstrate
• The Funding Band — the maximum the government will contribute to training costs

Most construction and building services trades have both a Level 2 (operative level) and a Level 3 (craftsperson level) standard. Level 3 is generally the target — it corresponds to a fully qualified tradesperson capable of working unsupervised.

Finding a Training Provider

The ESFA maintains the Register of Apprenticeship Training Providers (RoATP). You must use a provider on this register — funding cannot flow to an unregistered provider.

For construction trades, your main options are:

Further Education colleges — most FE colleges with construction departments offer apprenticeship training for local employers. The apprentice attends college one day per week or in block-release periods. Block release (typically one to two weeks at a time) is common for plumbing and electrical apprenticeships.

Group Training Associations (GTAs) — the CITB network includes GTAs across England that specialise in construction apprenticeships. They often offer more structured pastoral support and specialist assessment facilities.

Private training providers — an increasing number of private providers offer construction apprenticeships. Quality varies — check Ofsted inspection ratings and completion rates before committing.

The training provider will manage the ESFA funding application on your behalf. Once you have found a provider you want to work with, they will guide you through the paperwork.

CITB Levy and Grants

If your business falls within the scope of the Construction Industry Training Board levy (which covers the majority of construction employers, including most trades), you pay a CITB levy and in return can access CITB grants for training.

Levy rates (2024/25):

• 0.35% of the payroll for directly employed workers
• 1.25% of payments to labour-only subcontractors

Very small employers with a total payroll of £120,000 or less are exempt from the levy.

CITB grants for apprenticeships: CITB pays a grant for each apprentice you employ. The grant rate depends on the apprentice's year and the type of training. In recent years, CITB has paid approximately £2,500 per year per apprentice through the Apprenticeship Grant scheme, though rates change — check the CITB website for current figures.

You can also claim CITB grants for other training such as CSCS Cards, Health and Safety courses, and technical training. A small employer with one or two apprentices can often recoup more in CITB grants than they pay in levy.

The Funding Mechanics for Non-Levy Employers

If your annual payroll is below £3 million (which applies to the vast majority of tradespeople), you are a non-levy employer. Here is how funding works:

1. You find a training provider and agree a training plan with them.
2. The provider sets up an account on the Digital Apprenticeship Service on your behalf (or you create your own account).
3. The government pays 95% of the agreed training cost up to the funding band maximum.
4. You pay the remaining 5% directly to the training provider.
5. CITB grants can offset some or all of your 5% contribution.

Example: A plumbing apprenticeship with a funding band of £27,000. Government pays £25,650. You pay £1,350 over the three-and-a-half year programme. CITB grants of approximately £2,500/year would more than cover your 5% co-investment in most years.

Apprentice Pay

Apprentices are employees and must be paid at minimum the Apprentice NMW rate in their first year:

• Year 1: £6.40/hour (April 2024–March 2025) regardless of age
• Year 2 and beyond: the age-appropriate NMW rate applies

For an apprentice who is 19 by year two, that means £11.44/hour as of April 2024. Check the HMRC NMW rates each April.

Many employers pay above the minimum from the start — both because it is the right thing to do and because it helps attract better candidates. Advertising an apprenticeship at the bare minimum rate in a competitive local market for young people will reduce the quality of applicants.

Off-the-Job Training: The 20% Rule

Off-the-job training is any learning undertaken during the apprentice's contracted hours that is not their normal day-to-day work. It must account for at least 20% of their contracted time across the apprenticeship.

Off-the-job training includes:

• College or training provider attendance
• Skills training (new techniques, equipment operation)
• Theory and classroom learning
• Structured mentoring sessions
• Visits to suppliers or manufacturers
• Shadowing and observed practice in new areas

It does not include:

• Completing normal work tasks they already know how to do
• English and maths (if taken outside contracted hours)
• Progress reviews (unless substantial learning takes place)

You and the training provider share responsibility for tracking off-the-job hours. Most providers will give you a tracking template. This is an ESFA compliance requirement — inadequate off-the-job training records can result in funding recovery (clawback).

End Point Assessment

At the end of the apprenticeship, the apprentice must complete an independent End Point Assessment (EPA). The EPA is conducted by an End Point Assessment Organisation (EPAO) — an independent body approved by the Institute for Apprenticeships and Technical Education (IfATE). The EPAO is not the training provider.

For most construction trades, the EPA includes:

• A practical observation — assessed completing real work tasks to the required standard
• A knowledge test — written or oral examination of underpinning theory
• A portfolio review or interview — discussion of work completed during the apprenticeship

The apprentice must pass all elements of EPA to receive the apprenticeship certificate. Failure means the programme is not complete. Most standards allow one resit.

Gas Safe note: Gas engineering apprenticeships lead to ACS (Accredited Certification Scheme) assessments rather than a conventional EPA. The ACS is administered by Gas Safe Register-approved assessment centres. This reflects the safety-critical nature of gas work and the existing regulatory framework.

Employer Responsibilities

Taking on an apprentice is a commitment, not just a source of funded labour. Your obligations include:

• Employment contract — a signed apprenticeship agreement and a commitment statement signed by employer, apprentice, and provider
• Dedicated mentor — a named, experienced tradesperson responsible for the apprentice's on-site learning
• Off-the-job time — releasing the apprentice for college attendance or training (block release or day release)
• Review meetings — typically three-way meetings between employer, apprentice, and provider every 8–12 weeks to review progress
• Safe working environment — full health and safety compliance including appropriate supervision at all times
• Tools and PPE — the employer provides all tools and PPE the apprentice needs; they cannot be asked to provide their own

Scotland and Wales

Scotland: Apprenticeships are Modern Apprenticeships (MAs), funded by Skills Development Scotland (SDS), not ESFA. The qualification framework is the Scottish Credit and Qualifications Framework (SCQF). Construction MAs lead to Scottish Vocational Qualifications (SVQs). The funding structure and employer co-investment requirements differ from England.

Wales: Welsh apprenticeships are funded by the Welsh Government through the All-Wales Apprenticeship Programme, delivered through Colleges Wales and other providers. Wales has its own apprenticeship frameworks with some differences from English standards.

Northern Ireland operates separately through the Department for the Economy.

Frequently Asked Questions

Can a sole trader take on an apprentice?

Yes. Sole traders can employ apprentices. You do not need to be a limited company. You will need employer PAYE registration, Employers' Liability insurance (mandatory when you employ anyone), and a suitable premises or site environment for training.

What if the apprentice leaves before completing the programme?

If an apprentice leaves, you stop paying training costs from that point. If they leave in the first year, there may be a small amount of ESFA co-investment already paid that cannot be recovered — check with your provider. CITB grants are paid in arrears and are not normally clawback-eligible if the apprentice leaves.

Can I employ an apprentice who is already partly trained?

Yes — this is called a "transfer" or a "prior learning" scenario. If an apprentice has already completed part of a programme with a previous employer, the remaining programme can be shorter, and the funding is adjusted accordingly.

Do apprentices count for CIS purposes?

If you pay an apprentice through your payroll as an employee (which is the correct arrangement), they are not subcontractors and CIS does not apply. CIS applies to subcontractors, not employees.

What qualifications do they end up with?

A Level 3 apprenticeship completion gives the apprentice an apprenticeship certificate from IfATE and any technical qualification the standard specifies (e.g. a City & Guilds or EAL diploma). For plumbing and electrical, this is sufficient to then pursue relevant professional registration (such as JIB Card for electricians or membership of the Chartered Institute of Plumbing and Heating Engineering for plumbers).

Regulations & Standards

• Apprenticeships, Skills, Children and Learning Act 2009 — primary legislation for England apprenticeship framework

• Enterprise Act 2016, Section 36 — established Institute for Apprenticeships (now IfATE)

• National Minimum Wage Act 1998 and NMW Regulations 2015 — set minimum pay for apprentices

• Education and Skills Funding Agency (ESFA) — funds and regulates apprenticeship training in England

• CITB Levy Regulations — Construction Industry Training Board levy and grant scheme

• Health and Safety at Work Act 1974 — apprentices must receive full H&S protection as employees from day one

• ESFA Apprenticeship Funding Rules

• Find Apprenticeship Training (Gov.uk)

• CITB Apprenticeship Grants

• Institute for Apprenticeships and Technical Education

• National Minimum Wage Rates (Gov.uk)

• CIS explained — apprentices are employees, not subcontractors; CIS does not apply to them

• PPE for your workforce — PPE requirements you must provide to apprentices on site

• Taking on staff — broader guide to employment, PAYE registration, and employer obligations

• Sole trader vs limited company — how business structure affects employer obligations when hiring