Apprenticeship Incentive: Claim Your £4,000 Cash Boost By 30th September
Between 1st April – 30th September 2021, the Government increased the incentive amount payable to employers for recruiting new apprentices.
Employers can now apply for a payment of £3000 for new apprentices of any age who have an employment start date of 1 April 2021 to 30 September 2021. This incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice.
The incentive payment is separate from apprenticeship levy funding, meaning your business is free to spend it on any organisational needs. You can also use this to support your apprentice’s salary, travel expenses or other benefits such as uniform. You do not have to pay it back.
There is no limit as to the number of incentive payments you can claim for as long as the apprenticeship meets the required criteria set out by the government, including being a new employee to the business.
To get the full payment, the apprenticeship must last for at least one year. You’ll get the payments in two instalments after the apprentice completes 90 days and 365 days of learning as confirmed by their training provider.
You can only apply for new apprentices who:
are aged 16 to 18 years old (or under 25 with an education, health and care plan / been in the care of their local authority).
joined your organisation from 1 April 2021 to 30 September 2021.
You cannot apply for an existing employee who joined your organisation before 1 April 2021, even if they started an apprenticeship after this date.
Things to check
You cannot claim the incentive payment for hiring a new apprentice if:
the payment has already been made to a different employer for the apprentice. This includes if the apprentice was made redundant and the previous employer claimed an incentive payment for hiring a new apprentice.
the apprenticeship is not being managed using the apprenticeship service.
the apprentice has had a contract of employment with you starting within the 6 months prior to 1 April 2021.
Payments are made via the Apprenticeship Service. This is a government portal where employers can find, fund and manage their own apprenticeship programmes.
By setting up an account, as an employer, you’ll be able to:
Access and manage apprenticeship funding – including Government incentives.
Receive a transfer of apprenticeship funds (where eligible).
Advertise vacancies on Find an Apprenticeship.
Select suitable end-point assessment organisations.
Give feedback on apprenticeship training.
Give training providers permission to carry out some tasks on your behalf.
If you need any help with setting up your Apprenticeship Service account, don’t hesitate to contact us so that we can get your business set up and ready to recruit an apprentice as quickly as possible.
System Group have a wide range of Apprenticeship pathways available, including Large Goods Vehicle (LGV) Driving and a number of Leadership & Management courses. Our Apprenticeship specialists are on hand to help your business recruit a dedicated apprentice or upskill your current workforce.