UPDATE: 12th May 2021
Reminder: To all employers who hired an Apprentice between August 2020 and March 2021, the deadline to apply for the incentive payment is fast approaching. Eligible employers must apply for their incentive payment by the end of 31 May 2021.
• For new Apprentices aged 16 to 24, employers will receive £2,000
• For new Apprentices aged 25 and over, employers will receive £1,500
How to apply
Employers can apply for the incentive payment via the Finances section in their Apprenticeship Service account. For a walk-through of the process, employers can watch our support video.
Reminder: Steps to take before employers apply
There are 6 steps employers need to have completed before they apply for an incentive payment for hiring a new Apprentice:
1. They need to have registered an account on the Apprenticeship Service
2. If they do not pay the Apprenticeship levy, they need to have reserved funds in their Apprenticeship Service account
3. They need to have recruited an Apprentice
4. They need to have added their Apprentice to their Apprenticeship Service account
5. They need to have agreed a start date for Apprenticeship training to begin with their training provider
6. They need to have accepted the latest version of the ESFA employer agreement
Remember: If your new Apprentice (of ALL ages) joined your organisation from 1st April 2021 you could receive £3,000. This new incentive payment will be from 1 April 2021 to 30 September 2021.
UPDATE: 4th March 2021
In the March Budget, the Chancellor, Rishi Sunak put Apprenticeships at the centre of his coronavirus recovery plans by doubling the incentive payments handed to employers.
Under the new plans, the government will now pay an employer who hires a new Apprentice between 1 April 2021 until 30 September 2021, £3,000 for ALL ages.
You can apply for incentive payments for these Apprentices from 1 June 2021.
These payments are on top of the existing £1,000 that employers get for all new 16-18-year-old Apprentices and those aged under 25 with an Education, Health and Care Plan.
The payments for employers who hire new Apprentices is for employers in England.
For more information visit the GOV website: www.gov.uk/guidance/incentive-payments-for-hiring-a-new-apprentice
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.