New plans announced today (March 18) could create 20,000 more apprenticeships.

The Government will fully fund apprenticeships in small businesses from April 1, by paying the cost of training for anyone up to the age of 21.

The plan will remove the need for small employers to meet some of the cost of training and save time and costs for providers like further education colleges, which currently need to source funding separately from the government and businesses.

The move is underpinned by an additional £60 million of new funding for next year.

From the start of April, the Government will also increase the amount of funding employers who are paying the apprenticeship levy can pass onto other businesses. Apprenticeships can currently be funded by a levy paying employer transferring up to 25% of their unused levy to a different employer.

Under the new measures, large employers will be able to transfer up to 50% of their levy funds to support other businesses, including smaller firms, to take on apprentices.

Hundreds of large levy-paying employers have already taken advantage of the opportunity to transfer their unused levy funds to other businesses. Since September 2021, 530 employers including Asda, HomeServe and BT Group have pledged to transfer over £35.39 million to support apprenticeships in businesses of all sizes.

It's hoped that the two plans will help create up to 20,000 more apprenticeships, primarily for young people.

Gillian Keegan, Education Secretary, said: "Apprenticeships are a fantastic way for businesses to develop the skills they need, and these new measures will help more businesses and young people benefit from them."

Martin McTague, national chair at the Federation of Small Businesses (FSB), said "We welcome these very important announcements on apprenticeships. The Prime Minister is right to take decisive steps to support small employers do what they do best, providing jobs and opportunities in their local communities.

"We have campaigned for more levy-paying businesses to be able to transfer their funds to small businesses in their supply chain, and for crucial support on costs, so we're pleased to see the Prime Minister make this intervention today.

"Time and resources are in short supply for small businesses and so increasing the amount of funding for training costs will help to improve the number of small firms entering the apprenticeship system.

"Apprenticeships are an effective way of allowing small firms to recruit and up-skill talented people and these measures are a positive way to bolster the number of businesses taking on apprentices."