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Money matters

Apprenticeships really do pay you while you learn – joy!

As an apprentice, your employer will pay you a wage on a regular basis. How much and how often depends on the employer and the training contract you agree.  Chances are you’ll be paid a little less than someone with some experience. But fret not, as you go through your apprenticeship, gain more experience and a knowledge of the industry, there are opportunities, as with any job, for a pay rise.

It is worth remembering however, that as well as paying you, your employer will be training you, which isn’t a bad deal really.

The good, the bad and the ugly

The good

As if getting paid to study wasn’t enough of a perk, you’ll also be entitled to paid holidays and bank holidays too. Not shabby. It’s a good idea to discuss details with your employer before entering a training agreement, but you are entitled to at least 20 days of holiday every year – whatever you get on top of that is a bonus! There are some rules you’ll have to follow when you take holiday (some employers don’t let you take holidays at certain times of the year, for example). Speak to your employer to find out what their policy is.

And if that wasn’t enough for you lucky lot, most employers give you days off to study. Hurray!

The bad

Now for the not-so-good stuff – tax [evil boo hiss]. As you’re an employee, you will have to pay tax. If you want to find out what tax is, what it goes towards and how much you’ll have to pay, www.hmrc.gov.uk should have all the answers.

The ugly

The Barbican centre in London – it was voted the ugliest building in England by a BBC poll.
Ugley is a small village in Essex.
Gargoyles: they’re designed to allow water to flow away from the side of buildings. What’s wrong with a normal drain?

Financial help

Although your apprenticeship shouldn’t just be about the money, a little financial help can go a long way.  Feast your eyes on some funding providers that could give you a few extra pennies:

Education Maintenance Allowance (EMA)
Most apprentices are employed and so are not eligible for EMA.  But if you start as a ‘programme-led’ apprentice you won’t be employed so you could claim EMA.  (e.g., apprentices who enter their training programme as ‘unemployed’ apprentices; those who start their off-the-job training first with a college or learning provider, who are not yet fully employed). EMA can give you up to £30 a week to help you during your apprenticeship.  The money can be used for travel, books or just for everyday things like lunch.  The amount you get depends on your family income, and comes in £10, £20 and £30 contributions.

For more information, get web-happy and look at the DfES website.

Visit the Dfes website for further information about financial help.

Learner Support Funds
You can get extra help to fund your education. The money can be spent on books, equipment and any other related costs. The amount you are eligible to receive will vary but your training provider should be able to give you a better idea. Check out the DfES website for further information about financial help.

Child benefit
Child benefit is there to help out with the cost of childcare. Unlike lots of benefits, it’s not income-assessed so everyone gets the same.

Who’s eligible? People in full-time education who are bringing up a child could be eligible. For more info, check out the HM Revenue & Customs webpage. 

Housing benefit
Housing benefit is offered by local councils to help people with the cost of living (rent, bills, home maintenance). The amount you get depends on your individual situation, but it’s always worth finding out about.

Who’s eligible? If you’re on low income and you’re paying rent, you could be eligible. Head to the Department of Work and Pensions webpage to find out if you’re eligible.

Disability benefit
Disability benefits are there to help with the cost of care, mobility, travel or any other special requirements people with a disability might have.

Who’s eligible? The disability is available to people who have a disability and/or their carer. Visit the Department of Work and Pensions for more information.

Starting out: opening a bank account

Your employer will want to pay your wages into a bank account – if you don’t have one, it might be time to set one up (it doesn’t hurt a bit, we promise).

First things first – choose your bank. Some will try to entice you with free fluffy dice and 17 kettles, but don’t be too drawn in by this. The most important things are:

  1. The account’s interest rates: try and get an account with a high interest rate – it means you’ll make money just by leaving it in the account
  2. Overdraft facilities: try not to get a massive overdraft. The money is the bank’s not yours, and they’re likely to charge you. If you do need an overdraft, find out how much you’ll need to pay for going into it
  3. Accessibility to your cash: some accounts ask that you give them some notice before you take money out. On the plus side, their interest rates are better. But if you want to take money out without giving any notice, you’re probably best off opening a current account.

Once you’ve decided what account’s best for you, arrange to chat with someone at your bank. They’ll help you set everything up. Some accounts can take up to two weeks to activate, so make sure you open one before you start your apprenticeship.

 

All text is reproduced courtesy of Barker Brooks Media, publishers behind The Apprenticeship Guide. For more information, please contact the Editor at kirsty@apprenticeshipguide.co.uk.