NEW INCENTIVE PAYMENTS FOR TAKING ON AN APPRENTICE

 

Recognising the value that apprentices bring to the economy, the Government have launched generous apprentice incentive schemes to help boost the economy and to support the next generation of apprenticeships.

 

Following the chancellors’ announcement made 3 March 2021, any employers who recruit a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire, regardless of the apprentice’s age.

 

This is on top of the £1,000 payment already provided for new apprentices aged 16 to 18 and those under 25 with an Education, Health and Care Plan, meaning that some employers could receive £4,000 in total.

Age

New Employee*

Existing Employee*

16 – 18

 

 

£3,000 + £1,000

 

£1,000

 

19 – 24

 

£3,000

 

Not applicable

 

25 and over £3,000 Not applicable
 

19 – 24 who has previously been in Care or on an EHC plan**

 

 

£3,000 + £1,000

 

£1,000

* A new employee with a contract start date between 1st April 2021 and 30th September 2021
** Local Authority Education, Health and Care plan

 

To qualify for the incentive payment, the apprentice must be a new employee and not have worked for the employer within the last six months prior to their contract start date.

 

It is worth noting, apprentices who have a contract start date between 1 August 2020 and 30 September 2020 do not have to be hired as an apprentice, meaning employees who start in your business through normal recruitment channels and meet the eligibility criteria can attract the new hire incentives.

 

This makes the incentive a beneficial side effect of starting a new team member on an apprenticeship within their first few months of employment.

 

There is also no upper limit to the number of incentive payments an employer can claim. In the same way existing learner incentive payments are scheduled, the incentive payment for hiring a new apprentice is paid in two equal instalments at month 3 and month 12.

 

Unlike the current incentive payments, which are managed through your training provider, the incentive payments for hiring a new apprentice is claimed directly through the Apprenticeship Service.

Find out more

The purpose of these incentives is to support employers to create opportunities following the disruption of Covid-19. They are available for a limited period.

 

Hart Learning & Development can provide support with the range of incentives now available and discuss how our high quality apprenticeship programmes can benefit your business. Speak to our expert team, call 01462 471041 or email hello@hartld.co.uk or complete a contact form below.

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