UPDATE – 25TH November 2020:

Today, the Chancellor has announced in the Spending Review that the existing Apprenticeship employer incentive grants for “new hire” Apprentices which were due to end in January 2021 will now be extended a further two months, ending at the end of March 2021.


3rd August 2020:

The government has announced a “brand new bonus scheme” for employers to hire Apprentices over the next six months during the Chancellor Rishi Sunak’s summer statement.

The government’s Plan for Jobs will help to kickstart the nation’s economic recovery. In recognition of the value Apprentices can bring to our economy, an incentive payment will be made to employers who hire an Apprentice from 1st August 2020.

The Apprentice must be a new employee to the business, have a contract of employment start date between 1st August 2020 and 31st January 2021 (inclusive) and must not have been employed by the employer within the six months prior to the contract start date.

Any firm that hires a new young Apprentice within this time frame could get:

  • £2,000 for Apprentices aged 16 to 24
  • £1,500 for Apprentices aged 25 and over

There will be no limit on the number of incentive payments that an employer can claim for Apprentices eligible to receive funding, provided each Apprentice meets the criteria, including being a new employee.

Sunak told the House of Commons: “We know Apprenticeships work. Ninety-one per cent stay in work or go on to further training.
For the next six months we are going to pay employers to create new Apprenticeships opportunities.”

A “plan for jobs” document from the Treasury has been published and states these payments will be in addition to the existing £1,000 incentive the government already provides for new 16 to 18 year-old Apprentices, and those aged under 25 with an education, health and care plan where that applies.

It means that employers could receive up to £3,000 for hiring 16 to 18-year-old Apprentices from August to January 2021.

Claims can start to be made by employers in relation to these Apprentices from 1 September 2020. Those claims must be made through the Apprenticeship Service and  payment can be spent on anything they need to support their organisation.

For more information and guidance, please contact our Business Development Team today.