Incentive payment for hiring a new apprentice - how we'll make payments

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An incentive payment for hiring a new apprentice is different to the apprenticeship levy. You can spend the payment on anything to support your organisation’s costs, including facilities, uniforms, your apprentice’s travel or their salary.

 How well pay your organisation

You’ll need to add your organisation’s bank account details when you apply, so that we can make your payment.

You can only add one bank account for your organisation that we’ll use to make all of your incentive payments for hiring a new apprentice.

What youll get

For apprentices aged:

  • 16 to 24, you’ll receive £2,000
  • 25 and over, you’ll receive £1,500

We’ll work out the apprentice’s age on the day they start their apprenticeship. To get the full payment, the apprenticeship must last for at least one year.

The payment is in addition to the existing £1,000 you’ll already get for taking on an apprentice who is:

  •  aged 16 to 18 years old
  • under 25 and has an education, health and care plan or has been in the care of their local authority

We’ll make the payment direct to your organisation’s bank account.

When youll get paid

You’re eligible for the first payment after the apprentice completes 90 days of their apprenticeship training and the second payment after 365 days.

Before we can make a payment, we need your training provider to confirm whether the apprentice is still on their apprenticeship. Training providers usually submit information about their apprentices at the start of every month.

We'll start making payments from January 2021. It will take longer to get your first payment for any apprentices who start their training in August 2020.

For example, if your training provider confirms an apprentice started their apprenticeship training on:

  • 1 September 2020 - we’ll make the first payment on 14 January 2021
  • 4 January 2021 - we’ll make the first payment on 17 May 2021

 

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