Last call to claim your incentive payment for hiring new apprentices!
Wednesday 3rd March 2021
The chancellor announced on 3 March that the bonuses offered to employers who recruit an apprentice, set to end this month, will be extended for a further six months to September.
And any employers who hire 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 part of the governments' "plan for jobs" (https://www.gov.uk/government/publications/a-plan-for-jobs-documents/a-plan-for-jobs-2020) in response to the economic repercussions of Covid-19, a clear statement of intent that skills, apprenticeships and work based learning are at the centre of policy decisions to rebuild the economy.
Oxford Applied Training can help you access these much welcome incentives and recruit and support the right candidates for your needs.
Using carefully recruited and well-matched apprentices is a great, cost-effective and relatively risk-free way to plug your organisations' digital skills gap and improve productivity through more effective leadership and management development.
The payment is different to apprenticeship levy funds, you can spend it on anything to support your organisation's costs. For example, on uniforms, your apprentice's travel or their salary. You do not have to pay it back.
The following incentive payments are available if you recruit a new apprentice, regardless of the size of your business:
- £3,000 for hiring a new apprentice aged 16 to 18 (a £2,000 increase on the £1,000 available previously)
- £2,000 for hiring a new apprentice aged 19 to 24
- £1,500 for hiring a new apprentice aged 25 and over
You need to create your own apprenticeship service account and apply for the incentives, which will be paid directly to your organisation.
The government will make the payment direct to you in 2 equal installments for each apprentice. The first payment is after an apprentice completes 90 days of their apprenticeship and the second is after 365 days. To receive the full payment, the apprenticeship must last for at least one year.
Payments are made by Bacs on the 14th working day of the month. It usually takes 3 working days to process.
After you apply, you can view the estimated payment dates for each apprentice in your apprenticeship service account
The incentive payments are only available for new apprentices, and not for redundant apprentices where the payment was already claimed by the previous employer.
Oxford Applied Training can support you to create your account and navigate the funding.
Get in touch with one of our specialist advisors to advise you on accessing this welcome boost for your company before time runs out in a few weeks' time. You can also call us on 01235430460