INCENTIVE PAYMENTS FOR HIRING A NEW APPRENTICE

Education & Skills Funding Agency has updated its latest guidance (last update 7 April 2021) for incentive payments for employers who hire a new apprentice between 1 August 2020 and 30 September 2021.

Employers will receive £3,000 for new apprentices of any age who join their organisation from 1 April 2021 to 30 September 2021.

The incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice:

  • Aged 16 to 18 years old
  • Under 25 with an education, health and care plan or who has been in the case of their local authority

Apprentices who joined your organisation before 1 April 2021

For new apprentices who joined your organisations between 1 August 2020 and 21 March 2021:

  • Aged 16 to 24 years old, employers will receive £2,000
  • 25 and over, employers will receive £1,500

You must apply for these apprentices before 31 May 2021.

Apprentices who joined your organisation 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.

You can apply for the incentive payment after you add new apprentices to your apprenticeship service account.

You must set up an apprenticeship service account to apply.

The payment is different to apprenticeship levy funds, so you can spend it on anything to support your organisations costs. For example, on uniforms, your apprentice’s travel or their salary. You do not have to pay it back.

Learn more about incentive payments for hiring a new apprentice.

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