There are a number of costs involved when recruiting apprentices, but many firms will find funding options available that help them to meet these expenses.

The Government is keen for businesses to recruit young apprentices to help get people into work following the pandemic and are offering age incentive payments to encourage their recruitment.

All firms can claim £1,000 when they employ an apprentice who is aged 16 to 18 years old, or if they are aged 19 to 24 years old and have previously been in care or have an education, health and care plan (EHCP).

The money is paid in two equal instalments, with businesses receiving half after the apprentice completes 90 days of their apprenticeship and the remaining half after 365 days have been completed. The payment is automatically available via the training provider and then passed onto the employer.

There was also an additional £3,000 available for each apprentice of any age hired between October 1 2021 and January 31 2022 and who start their apprentice training before March 31 2022.

For businesses based in Norfolk there are local funding that they can apply for to help with the costs of hiring apprenticeships.

Norfolk firms can apply for £1,000 incentive grants, as well as £500 bursary grants when recruiting apprentices aged 16 to 24. These grants can be applied for via Apprenticeships Norfolk.

Businesses are liable to pay an apprenticeship levy of 0.5pc of an employer's annual pay bill, however firms do not have to pay this if they have an annual pay bill of less than £3m.

Companies that have to pay the levy can apply for an allowance that reduces the amount they pay by £15,000 across the year. This allowance is available to employers not connected to another company or charity, however those that are connected can split a £15,000 allowance between all the companies and charities.

Businesses that do not need to pay the levy pay 5pc towards the cost of training and assessing the apprentice. The employer must agree a payment schedule with the training provider and pay them directly for the training. The government will then pay the rest up to the funding maximum that will be paid directly to the training provider.

Firms that have to pay the apprenticeship levy will receive funds to spend on training and assessing the apprentices. The government will add 10pc.

Although there are a number of funding options available to firms, businesses should be aware of the costs involved when hiring apprentices.

Apprentices must be paid wages that includes the time they are in work and in 'off the job' training, including holiday pay of at least 20 days per year plus bank holidays.

A National Minimum Apprenticeship Wage is applicable to apprentices aged 16 to 18 and those aged 19 or over in the first year of their apprenticeship, which is currently £4.30 an hour. Those aged 19 or over are entitled to the National Minimum Wage for their age once they have completed their first year.

Employers also have to factor in additional costs of recruiting apprenticeships, including paying for tools, equipment and travel.