Incentive payments extended until September 2021

Did you know that the incentive payment for hiring a new apprentice from April 2021 has increased and lasts until September 2021?

If an organisation hires a new apprentice of any age they will receive a £3,000 bonus from the government. For new apprentices aged 16-18, or those under 25 with an Education, Health and Care Plan an additional £1000 will be paid, meaning that employers could receive up to £4,000 for a single apprentice.

The incentives in place are to encourage employers to take on apprenticeships and get support with some of the costs associated with taking an apprentice. This plan is certainly more attractive, especially to smaller businesses who an support young people getting into work and benefit from hiring new talent.

Originally the incentive was scheduled to run from August 1st until January 31st 2021, but after a second extension the scheme will now run until September 31st 2021.

Employers who have apprentices joining from 1 April 2021

  • Employers will receive £3,000 for new apprentices of any age who join their organisation from 1 April 2021 to 30 September 2021.
  • You can apply for incentive payments for these apprentices from 1 June 2021 to 30 November 2021.
  • Payments will be in addition to the existing £1,000 payment the government already provides for new 16 to 18-year-old apprentices and for those aged under 25 with an education, health and care plan or who has been in the care of their local authority
  • Scheme available to levy and non-levy organisations.

Apprentices who joined your organisation before 1 April 2021

For new apprentices who joined your organisation between 1 August 2020 and 31 March 2021 aged:

  • 16 to 24, employers will receive £2,000
  • 25 and over, employers will receive £1,500
  • You must apply for these apprentices before 31 May 2021.

Further information on payments: 

  • The employer must not have employed the apprentice within the six months prior to the apprenticeship contract start date.
  • There is no limit on the number of incentive payments
  • Payments will be made directly to employers in two equal instalments, where the apprentice is still in learning at day 90 and day 365.

Speak to us today to learn more about how to hire an apprentice and receive these incentives.

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