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.

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.