BT Group has today launched a new Apprenticeship Fund, designed to support SMEs, charities and public sector organisations across England by providing access to £4m in apprenticeship funding over an initial four-year period.

Since 2017, companies with an annual wage bill of more than £3 million have been required to pay the apprenticeship levy, using the funds to recruit and train apprentices. They can also choose to transfer up to 50% of their levy to help support other companies.

BT Group has partnered with Babington, one of the UK's largest and longest-established apprenticeship training providers to transfer up to £4 million from its apprenticeship levy funds to help SMEs, charities and the public sector train new apprentices and upskill their existing workforce.

Babington will play a crucial role in matching businesses with appropriate training providers and guiding them through the application process. Successful applicants will be provided with access to funded apprenticeship training within 20 days, subject to meeting funding criteria.

The Fund has the ability to scale up depending on take up and could support up to 550 apprentices, resulting in a £21m positive economic impact. The launch comes at a time when more than a third of mid-sized businesses are struggling to recruit apprentices.

Chris Sims, Managing Director for Small and Medium Business at BT said: "SMEs make a significant contribution to our economy, but their uptake of apprenticeships is low. By sharing up to £4 million from our apprenticeship levy funds, we’re giving these businesses the financial support they need to invest in talent. This not only helps create a more skilled, diverse, and competitive workforce, it also provides SMEs with additional resources to grow and scale their business. The apprenticeship programme at BT has not only shaped our workforce, it has also helped set industry standards.”

Jen Bramley, CEO of Babington, commented: "We are thrilled to partner with BT Group on this transformative project. Our expertise in apprenticeships and training will ensure that SMEs can navigate the process smoothly and connect with high-quality training providers. This collaboration has the potential to make a real difference in addressing skills gaps and supporting business growth across England."

As confidence amongst small business leaders starts to rise, the Fund forms part of a wider set of measures to help boost their connectivity, security and skills. BT’s mobile payments app, Tap to Pay, helps small businesses accept in-person contactless payments on their iPhone or Android, removing the need for card readers or extra hardware, at a market leading rate for small businesses (1.4%). In addition, four months free broadband for customers on 24 and 36-month contracts and three months free cyber awareness training for their employees will be on offer to help SMEs grow and protect their business.

A key focus of the Apprenticeship Fund will be on digital skills development, reflecting BT's own emphasis on technology and innovation in its apprenticeship programmes. This approach aims to help SMEs bridge the digital skills gap and adopt new technologies, enhancing their competitiveness in an increasingly digital economy.

The Fund is open to SMEs, charities and public sector organisations across England, including the NHS, focusing on apprentices aged 22 and older. It aims to support local economic growth, reduce the digital divide, and enhance social mobility by providing quick access to apprenticeship funding.

As one of the UK’s largest private sector apprenticeship employers, BT Group has a track record of providing award winning apprenticeship experiences. The company has recruited more than 3,000 apprentices and graduates over the past five years and earlier this year announced plans to hire a further 500 apprentices and graduates for its September 2024 intake, recognising the impact they deliver to the business

Organisations interested in accessing apprenticeship levy funding can register their interest on the BT Group Apprenticeship Fund Portal.

For advice on if recruiting apprentices is the right choice for your business, contact one of our Advisers for free support.