FSB calls for higher pay and more support for apprentices

The Federation of Small Businesses (FSB) has brought out new proposals to get more apprentices into work and to give them a pay rise, ahead of a government meeting on employing young people tomorrow (Wednesday 29 July).

The FSB’s proposal for getting young people into apprenticeships calls for higher wages for apprentices; a scheme to link up apprentices with firms and job offers; funds for training to be redirected to the very smallest firms; and a financial incentive for firms that take on an apprentice.

Micro firms particularly struggle with the administrative burden of setting up apprenticeships, organising training and securing financial support – however, they are a central plank to tackling youth unemployment.

The FSB’s proposals give government practical solutions to the growing problem of unemployment. They call for:

– The minimum wage for all apprentices to rise from £95 to £123 per week to increase the incentive to complete an apprenticeship

– A national group apprenticeship programme (GAP) – effectively a job service to link up potential apprentices with companies looking for a trainee. The GAP would act as a safety net for apprentices, by finding them a job and placing them in employment, and would take on the administrative burden for small firms including financial and health and safety risks

– Funds from the government’s skills budget in England redirected to, and ring-fenced for, the hardest to reach, smallest businesses that do not currently benefit from, or even know, the funding exists

– An awareness campaign about the benefits of apprenticeships and financial support for those small firms that take on apprentices

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.”