TESP publishes insights into apprentice charge-out rates
Research exploring employers’ different approaches to charge-out rates for electrical apprentices has been published by TESP.
This latest piece of work was carried out to enhance the apprentice Return on Investment (ROI) calculations that TESP conducted in 2025, which found that businesses still can realise a positive ROI, albeit at a lower return than found in 2019 calculations.
With the rate at which an apprentice is charged out being a key element in determining the ROI of apprentices, the results showed that most interviewed businesses (76%) work on a fixed price basis – this was slightly higher for medium/large (85%) than micro/small businesses (67%).
When determining apprentice charge-out rates, many (78%) businesses apply an hourly rate for their apprentice when pricing work. Most (65%) have a formal process in place for this taking into account associated costs such as apprentice wages, supervision, equipment, administration and travel. Several (30%) increase-charge out rates in line with wages, while some (24%) apply a charge-out rate as a proportion of the cost of a fully qualified electrician (which may vary depending on the ability/experience of the apprentice).
Of those with no formal process for determining charge-out rates, most said they simply assess and price a job based on the overall cost of the labour and materials.
The research also explored views on apprentices’ roles and recruitment, with the following findings:
- Employers broadly agreed that Year 1 apprentices largely shadowed qualified electricians, and helped with preparation of tools, materials and site preparation; in Year 2 they undertake wiring and cabling etc under supervision, before being more proficient and capable of most tasks by Year 4.
- Collaboration with colleges was widely valued for candidate vetting and apprentice support, though some employers cited communication issues and tutor shortages affecting quality.
- Many employers assess candidates through trial periods or temporary contracts, alongside pre-apprenticeship roles and internal training schemes.
- Suggested improvements included greater emphasis on practical skills and on-site collaboration, earlier health and safety training, and improved consistency in college staffing to reduce tutor and assessor shortages.
Other recommendations made in the report include developing a best practice toolkit to help employers with apprentice recruitment with guidance on trial periods, candidate assessment and retention, and setting up an apprentice loan scheme between businesses to help learners gain exposure to all the skills they need to become a qualified electrician.
In addition to the research, TESP has also published a summary guidance giving practical advice and considerations to help businesses set rates that are fair, competitive and reflect the true value apprentices bring as they grow in skill and confidence.
TESP Chair, Ruth Devine MBE, said:
“Given the diminished ROI that our earlier research highlighted, the importance and significance of the apprentice charge-out rate should not be under-estimated and we hope this additional piece of work and guidance supports businesses in this respect.
“Many employers maintain a commitment to recruiting and training apprentices but growing business and cost pressures mean the quality of candidates and training delivery is ever more important.”
