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Incentive payments for hiring a new apprentice

Apprenticeships are jobs with training, that benefit people of all ages and backgrounds. Due to the coronavirus (COVID-19) pandemic, employers may face challenges with hiring new apprentices.

How the government is supporting you

The government has introduced incentive payments for hiring a new apprentice.

The scheme provides employers who hire a new apprentice between 1 August 2020 and 31 January 2021 with a payment of:

  • £2000 for each new apprentice aged 16 to 24
  • £1500 for each new apprentice over the age of 25

The government will make this payment in addition to the £1000 payment that employers already receive for taking on an apprentice:

  • aged 16 to 18
  • under the age of 25 with an education, health and care plan

How the employer incentive payment works

From 1 September 2020, employers can apply for the incentive payment through their apprenticeship service account. The government will make the payments directly to employers’ bank accounts.

You’ll get the payment in 2 equal instalments. 50% after the apprentice completes 90 days of their apprenticeship and the remaining 50% after the apprentice completes 365 days of their apprenticeship.

To qualify, the apprentice must still be employed by the same employer and be carrying out their apprenticeship (as evidenced by the ILR). The first payments will be made from January 2021.

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