Apprenticeship Boost for our industry

Thursday 18th of June 2020
plumbing gasfitting drainlaying apprentices apprenticeships host companies Apprenticeship Boost

Apprenticeship Boost is part of the government’s financial package to support employers to keep training their current apprentices and assist them to take on new ones.

Without a tradesperson willing and able to take an apprentice, there is simply no apprenticeship. Apprentices are essential to the future of our industry and New Zealand’s economic recovery.

If your plumbing, gasfitting and/or drainlaying business is looking to take on a new apprentice in light of yesterday's announcement, check out the Candidate Profiles on our website or get in touch with your local Regional Manager to find out about the stars we have available in your area.

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Although Masterlink employs our apprentices, we will be passing this subsidy on to our host companies as they are providing the on-job training necessary for the apprenticeship.

As a Group Training Scheme, Masterlink is working with TEC to access additional funds available for our mentored apprenticeship programme and will provide an update as soon as we have more details.

During lockdown, to prevent a decline in apprentice numbers, Master Plumbers lobbied hard for financial support for employers that train. Master Plumbers and Masterlink Chief Executive Greg Wallace has advocated for many years for employer funding which recognises the associated cost and financial risk to businesses. We welcome this new funding and we want to see it available on a permanent basis – not just during the COVID-19 economic recovery phase.

We are very pleased to have achieved this strong result for our industry. We hope this will lead to an increase in businesses realising what a valuable asset an apprentice is and start training the next generation of skilled workers. Currently, only 10% of construction sector businesses take on apprentices and we believe ongoing financial support would help boost these stats and get our industry on track to meet future demand.

Here are the details of the Apprenticeship Boost:

  • From August 2020 and up to April 2022, employers will be able to apply for funding of up to $12,000 per apprentice in their first 12 months of training, and up to $6,000 in their second 12 months (subject to conditions below).
  • The Apprenticeship Boost is available for all new and existing apprentices in the first and second year of their apprenticeship, if they are enrolled in a TEC-approved or Managed Apprenticeship.
  • The Apprenticeship Boost will be paid to the employer per eligible apprentice. An employer could get a maximum of $16,000 for an apprentice who is starting their training (12 months at the first-year rate, and 8 months at the second-year rate).
  • Employers will receive $12,000 per full year of training (ie: $1,000 per month) for each first-year apprentice, and $6,000 per full year of training (ie: $500 per month) for each second-year apprentice. They may receive less than the full year amount depending on where in their training each apprentice is. For example, if a first-year apprentice is already 9 months into their training, they will receive 3 month’s support at the $12,000 per year rate (i.e. $3,000) before shifting to the second-year rate of $6,000 per full year of study.
  • The initiative runs for 20 months, with an employer getting $1000 per month for a first-year apprentice and $500 per month for a second-year apprentice.

Further information about how to apply will be available in coming months. This initiative will be delivered by the Ministry of Social Development and the New Zealand Government press release can be read here.