Skip to main content

Table 3 Net costs of training an apprentice in engineering at Level 3, 2011.

From: Employers and apprenticeships in England: costs, risks and policy reforms

  Year 1 Year 2 Year 3 Year 3.5 Total
Background information
 Drop out rate (%) 11 9 9 0 29
 Apprentice salary (£ pa) £11,423 £13,369 £15,492 £7975 £48,259
 Salary of fully experienced worker + NI (£ pa) £24,831 £24,831 £24,831 £12,415 £86,908
 Apprentice productivity (% of skilled worker tasks undertaken by apprentice) 28 54 69 78  
Supervision (per trainee)
 % Training manager’s time spent training (pa) 7 7 7 7  
 % Line manager’s time spent training (pa) 9 6 4 1  
 % Supervisor’s time spent training (pa) 15 11 10 2  
 Training manager’s salary (£ pa) £41,750  
 Line manager’s salary (£ pa) £29,600  
 Supervisor’s salary (£ pa) £25,800  
 Total labour costs of supervision (including employer NI contributions) £9515 £7739 £6642 £1867 £25,764
Total training costs per apprentice (£)
 Costs of recruiting the apprentice £750 £0 £0 £0 £750
 Course fees £558 £558 £536 £1081 £2734
 Supervision costs £9515 £7739 £6642 £1867 £25,764
 Administrative costs/other costs £500 £389 £389 £563 £1840
 Total cost £22,747 £22,055 £23,060 £11,486 £79,348
Total benefit to employer per apprentice
 Trainee product £6299 £12,347 £15,622 £8787 £43,055
 Other income (please specify)      
 Total benefit per trainee £6299 £12,347 £15,622 £8787 £43,055
 Net cost per apprentice £16,448 £9709 £7438 £2699 £36,292
 Net cost including drop out £18,179 £10,591 £8114 £2699 £39,582