SMEs and charities can apply for £4 million in apprenticeship grants

Babington, a leading UK apprenticeship and training provider, has partnered with BT Group to introduce a four year initiative aimed at unlocking £4 million of apprenticeship funding. Jillian O’Connor, Partnership and Performance Manager at Babington, explained that the new fund will support small and medium-sized enterprises (SMEs), charities and public sector organisations across England. The initiative seeks to help businesses with limited budgets access vital apprenticeship opportunities and close skills gaps.

Babington also partners with BCS as the provider for end-point assessments within the data, digital, and IT sectors. This collaboration underscores Babington’s commitment to high quality assessment and standards for apprentices in technical disciplines.

Jillian said, ‘This fund allows smaller organisations to access funding they could not otherwise reach. By transferring up to £4 million of BT Group’s levy contributions, we aim to impact workforce development within communities that need it most directly.’

Purpose and goals

The BT Group Apprenticeship Fund builds on the apprenticeship levy introduced in 2017. Employers with annual wage bills above £3 million have contributed to the levy, which is used to fund apprenticeship training. Organisations that cannot spend their levy funds may transfer up to 25% of their contributions to other employers.

‘BT Group recognised that many smaller businesses and charities struggle to fund apprenticeships’, Jillian said. ‘By transferring funds through Babington, BT Group can help these organisations train new apprentices and upskill existing staff.’

A key focus of the fund is digital skills. Jillian explained that in a rapidly evolving digital economy, smaller organisations often face challenges adopting new technologies. ‘We designed the programme to help employers bridge the digital skills gap. We want them to benefit from technologies that enhance productivity and competitiveness’, she said.

The fund is not limited to digital programmes. Employers may apply for funding in human resources, leadership and management, accountancy, business administration and customer service. Through Babington’s network of training providers, the partnership can cater to a wide range of apprenticeship standards.

Eligibility and application process

The programme targets organisations that need to fund apprentices aged 22 or over. Government funding already fully covers apprentices aged 21 or under at the start of their programme. ‘If a business wants to recruit an apprentice aged 22 or above, the fund will cover the training costs’, Jillian said. ‘Employers must pay at least the national minimum living wage to the apprentice.'

Prospective applicants need to complete a registration and application form, which takes no longer than 20 minutes. Once Babington approves the registration, businesses may log in to submit funding applications, one per apprenticeship standard.

‘After registration is approved, employers gain immediate access to the system,’ Jillian explained. ‘They submit an application for each apprenticeship standard they are required to meet. We review every application and issue a charter document. The apprentice completes a consent form and a questionnaire. Once checks are complete, we arrange a connection call with BT Group to transfer the funds and support the apprentice’s setup.’

The application process does not involve formal tests. Employers provide evidence such as candidate details and business information. There are no fixed deadlines; funding is allocated on a first-come, first-served basis.

‘Employers need not commit to hiring an apprentice until after they are approved,’ Jillian added. ‘Registration is risk-free. Once approved, organisations can apply for funding when they are ready.’

Businesses can register via the portal.

Assessing suitability

Any employers that are unsure whether the programme suits their needs may consult the Babington team for tailored advice. Jillian advised businesses to consider apprenticeships if the cost of training presents a barrier. ‘If the training cost deters you from taking on an apprentice, this fund removes that obstacle. Our team can guide you through the process and help you identify suitable apprenticeship standards for your workforce.’

Success stories

Several organisations have already benefited from the apprenticeship fund. Warwickshire Police used the scheme to train employees in human resources. ‘Our learners developed knowledge in Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), employment law, recruitment and diversity and equity and inclusion’, Jillian reported. ‘As a result, the HR team now delivers support with greater confidence and consistency. They advise on policy and employee rights more effectively. Communication, collaboration and inclusion within the team have improved significantly.’

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East Kent Mencap, a charity supporting people with learning disabilities, accessed £12,000 of funding. ‘Without the BT Group Apprenticeship Fund, we could not have invested in this development’, said a spokesperson for East Kent Mencap. ‘We extend our deepest gratitude to BT Group and Babington for facilitating this opportunity and enabling our new apprentice to contribute meaningfully to our mission.’
Midlands Air Ambulance has also drawn on the fund to recruit an apprentice despite relying on public donations for its £16 million annual operating costs. An organisational representative stated that training the apprentice will enhance the charity’s capabilities and help expand its services. ‘Once the apprentice completes their qualification, they will directly enhance our operations’, they noted. ‘Improved skills will support our mission and drive further donations to meet rising future costs.’

Jillian said these early successes underline the programme’s impact. ‘We have seen a real uplift in confidence and capability among staff at our partner organisations. They now possess skills that will shape their organisations’ futures.’

Looking ahead

The Apprenticeship Fund is scheduled to run initially for the next few years and, looking forward, Jillian voiced hopes that the programme could endure. ‘We aim to support local economic growth, reduce the digital divide and enhance social mobility through quick access to funding’, she said. ‘We know apprentices bring fresh perspectives and drive innovation. We hope to see many more organisations benefitting from this partnership over the coming years.’

She emphasised that apprenticeships not only boost individual careers but also strengthen entire communities. ‘When employers invest in apprenticeships, they cultivate a skilled workforce that contributes to local prosperity. Our partnership with BT Group is designed to foster that impact.’