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 between 1st August 2020 and 31st January 2021.
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 who are aged 16 to 24 will receive £2,000, while those that hire new Apprentices aged 25 and over will be paid £1,500.
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.