Incentive payments for hiring a new apprentice

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Apprenticeships will be more important than ever in helping businesses to recruit the right people and develop the skills they need to recover and grow – both now and in the long-term. Due to the economic impact of the coronavirus (COVID-19) outbreak the government has introduced incentive payments for hiring a new apprentice to help organisations offer new apprenticeships.

Employers who hire a new apprentice between 1 August 2020 and 31 January 2021 can apply for:

£2,000 for each new apprentice aged 16 to 24

£1,500 for each new apprentice 25 and over

You can apply for the payment from 1 September 2020, after you add new apprentices to your apprenticeship service account.  The first payments will be made from January 2021 and will be paid directly into employer’s bank accounts.

How the incentive payments for hiring a new apprentice works

You’ll get the payment in 2 equal instalments. You will be eligible for 50% of the payment 90 days after the apprentice’s start date, and the remaining 50% after the apprentice completes 365 days of their apprenticeship.

The apprentice will need to be in employment and undertaking their apprenticeship at these times as evidenced in the Individualised Learner Record.

Apprentices who’ve been made redundant are eligible as long as they’re a new employee to your organisation. To get the second instalment the apprentice must have at least one year (356 days) of training left to complete.

How to apply

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