There’s never been a better time to take on an apprentice. In March 2021 the government announced an increase and extension to the July 2020 incentive scheme to support employers who hired new apprentices between 1 August 2020 and 31 March 2021, which has been extended to 30 September 2021.
The incentive can be used to pay towards the apprentice’s salary, so you will be benefitting from the support of new talent in your team or the reskilling of existing employees, while being incentivised for supporting their employment and development. The Government also announced an increase in the incentive and removal of age barriers.
What is the new government incentive?
Employers can now receive up to £4,000 for each new apprentice with the new incentive.
Between 1 April and 30 September 2021 employers will receive:
- £3,000 per new hire, regardless of the apprentice’s age;
- an additional £1,000 if the apprentice is aged 16 to 18 years old, or those under 25 with an Education, Health and Care Plan.
What was the previous government incentive?
The previous incentive provided employers who hired a new apprentice between 1 August 2020 and 31 March 2021 a payment of:
- £2,000 for apprentices aged 16 to 24;
- £1,500 for apprentices aged 25 and over.
This payment is in addition to the £1,000 employers already receive for hiring an apprentice who is:
- aged 16 to 18 years old; or
- those under 25 with an Education, Health and Care Plan.
What can I use the payment for?
- The payment is different from apprenticeship levy funds so 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.
- You can only apply for this payment for new apprentices who started their contract of employment between 1 April 2021 and 30 September 2021.
Your apprenticeship partner
QA is the UK’s leading tech teaching provider and has trained over 10,000 tech apprentices. We work with you to help recruit tech apprentices or help reskill your existing workforce. Our programmes, from level 3 to level 7, help learners develop further and faster, shaping the next generation of technologists, leaders and innovators, and providing your business with the in-demand tech skills you need. Contact us today!
Watch our webinar about the incentive scheme
Watch our free 45-minute webinar to discuss and understand:
- Positive impacts of the incentives to your business;
- Exploring ways in which they can be used to support developing talent strategies within organisations that elect to utilise them;
- Outlining QA's strategies to support these incentives where appropriate to do so; and
- Sharing responses to questions being asked.
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