Jewellery entrepreneur Jason Holt, was commissioned by the Department of Business, Innovation and Skills (BIS) in February to review ways to make apprenticeships simpler and more accessible for SMEs.

His report concludes that the current system is "misunderstood and inaccessible" and "not always helped by a plethora of organisations willing to give – sometimes conflicting - advice".

Holt said: "Whilst apprenticeships offer undoubted growth opportunities for businesses, not enough SMEs are taking advantage.

"This is because they have an outdated view of apprenticeships, are often in the dark, and frequently do not receive the specific training provision their apprentices need."

His report calls for the development of better and more consistent messaging about the benefits of apprenticeships both for SMEs and the economy at large and for initiatives to help SMEs develop their own training provision or to work with providers and others to design apprenticeships that address skills shortages quickly and effectively.

He also urged the government to explore other financial incentives for SMEs in addition to the Apprenticeship Grant for Employers (AGE), such as reduced National Insurance Contributions.

Holt founded the not-for-profit Holts Academy in 1999, which provides government-accredited training to the jewellery sector.

He said he founded the academy, which will see 850 learners including 150 apprentices gain accredited qualifications over the next year, due to concern about an ageing workforce in the sector and a lack of new talent being brought in.

In response to Holt’s recommendations skills minister John Hayes outlined a series of changes to the existing system including the AGE, which provides up to 40,000 grants of £1,500 to employers, and which will now be delivered in a single payment rather than being split into two.

Employers with up to 1,000 employees will be able to claim grants for up to 10 apprentices, and the scheme will be opened to employers who have not hired an apprentice in the past year.

Other changes include improving communication about schemes through groups who advise SMEs, including lawyers and accountants, introducing new standards for training providers in order to improve their performance and providing better information for businesses on getting the right type of training for their apprentices.

FSB chairman John Walker said he was "pleased" that changes had been made to the AGE grant.

He said: "Small firms need help to be able to take on an apprentice and we’re pleased that the time limit on the AGE Grant has been reduced from three years and will now be open to businesses that have taken on an apprentice in the previous 12 months.

"This will open it up to more firms that have had a recent apprentice, enabling them to take on another.

"We are also pleased that the Holt report recognised the need for better communication of the apprenticeship programme to SMEs."