Extra incentives for businesses to hire apprentices
Wednesday 15th July 2020
The government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021.
These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year old apprentices, and those aged under 25 with an Education, Health and Care Plan.
The ESFA has set some guidelines regarding this:
- The apprentices must not have been employed by the employer within the six months prior to the apprenticeship start date
- There is no limit on the number of incentive payments
- The payment will be made directly to employers in two equal instalments, where the apprentices is still in learning at day 90 and day 365.
Chancellor Sunak told the House of Commons:
"We know apprenticeships work. 91% stay in work or go on to further training.
For the next six months we are going to pay employers to create new apprenticeships."
This is part of a two billion pound "kick-start" response to the Covid-19 economic crisis, published in the Treasury "plan for jobs" document .
Association of Employment and Learning Providers chief executive Mark Dawe commented that the chancellor "clearly understands that apprenticeships work and give real jobs to young people with high quality training".
Oxford Applied Training is here to assist you to speedily access these new funds.
Get in touch and one of our experienced advisors will help guide you through this potentially bewildering new landscape of new initiatives.