Getting on top of the Covid-19 crisis in New Zealand has been a huge achievement by our team of 5 million. However, the health crisis has brought some tough times which mean we need to focus on recovering and rebuilding our economy.
Thank you for reading this post, don't forget to subscribe!The government’s recently announced apprenticeship support scheme, Apprenticeship Boost, is part of a wider programme to keep apprentices in jobs and support employers to invest in new ones.
When the economy is tough, businesses large and small may look to cut costs by cutting jobs. The least experienced employees are often the first to go. These measures can have enormous long term consequences for apprentices as they lose their jobs, education and training opportunities.
The Apprenticeship Boost scheme means employers will be able to get a subsidy for their apprentices’ wages for the first two years of an apprenticeship. It won’t cover all the costs of taking on a new trainee, but it will help with paying wages. That will make it easier for businesses to keep apprentices employed.
The support programme runs from August 2020 until April 2022, and can be accessed through the Ministry of Social Development. The subsidy is worth up to $12,000 a year for the first year of an apprentice’s training, and up to $6,000 in the second year. It’s available for any apprentice enrolled in a TEC-approved NZ or Managed Apprenticeship in the first or second year of their apprenticeship.
Being able to keep apprentices on is important for business confidence and will help to mitigate future skills shortages. This assistance, along with the wage subsidy and the wage subsidy extension, will provide much needed support for both businesses and employees.
This all adds to the support package the government has provided to help keep businesses going and keep people in touch with employment during the Covid-19 crisis. That helps us all to get on with the work of recovering from Covid-19, and rebuilding our economy for the future.
-Deborah Russell, Labour MP based in New Lynn, Auckland.