14 Feb 2025Increasing the financial incentive for small businesses to employee apprentices could increase uptake, according to the Federation of Small Businesses (FSB). To mark this year's National Apprenticeship Week in England, the business group has released statistics that found almost half of small business employers say reintroducing a £3,000 incentive would encourage them to take on apprentices. Of those small firms that currently employ an apprentice, almost three quarters say the financial incentive could mean taking on more in the future. Currently, employers are given £1,000 when they hire an apprentice under 19 years old. The FSB is calling on the government to use the summer's Spending Review to update this to a £3,000 incentive for those hiring an apprentice under 25 years old, exclusively for SMEs. Tina McKenzie, FSB Policy Chair, said: 'Our members who employ apprentices often tell us how they help fill skills gaps in their team and also bring in fresh new ideas. 'We'd love to see the starts numbers increasing and more small firms taking on apprentices, particularly at the entry-level. 'With so many struggling with the admin side of taking on an apprentice, it's clear time and resources are in short supply for small businesses, most of which don't have a separate HR team. Providing financial incentives would help to offset this.'