Employer cash incentives to double to £3,000 for adult apprentices

The cash bonus scheme for hiring apprentices aged 25 and over is set to double to £3,000 and will be extended by six months.


Chancellor, Rishi Sunak, and the Government have extended incentive payments for hiring a new apprentice.


You’re now eligible if you take on apprentices as new employees from 1 August 2020 to 31 March 2021. You can apply until 31 May 2021. (You must set up an apprenticeship service account if you want to apply for an incentive payment.)


The payment is in addition to the £1,000 employers already receive for hiring an apprentice, meaning that some employers can receive up to £4,000:

  • aged 16 to 18 years old

  • under 25 with an education, health and care plan or has been in the care of their local authority


On Friday 26th Mr Sunak said: “Our Plan for Jobs has spread opportunity and hope throughout the crisis, helping people back into work and harnessing their talents for the future.


“We know there’s more to do and it’s vital this continues throughout the next stage of our recovery, which is why I’m boosting support for these programmes, helping jobseekers and employers alike.”


The chancellor is also expected to unveil a new 'flexi-job' apprenticeships allowing apprentices to link with agencies and work with multiple employers within the same industry to boost upskilling. With expected start roll-out to begin in January 2022.


The new budget will increase cash incentives for employers to take on new apprentices. Employers receive a cash payment from the Government of £2,000 for each apprentice aged between 16 and 24, and £1,500 for those over the age of 25.


From April, the incentive scheme will be simplified and increased with a £3,000 payment per hire, regardless of the apprentice’s age. The new incentive has also been given an extension of 6-months until the end of September to boost employability and help our nation's recovery from a pandemic.



What you can use the payment for


The payment is different to 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.



Thousands of employers across the UK have praised the apprenticeships schemes in place and consider apprentices vital to their companies recovery and growth. Contemplate hiring an apprentice for your organisation today and talk to our System Group Apprenticeship Specialists who will guide your application process and provide our fully-funded recruitment service: info@system-group.com


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