Changes to the incentive payment for hiring a new apprentice

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As the economy recovers from the impact of COVID-19, 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.

Employers will be able to apply for a payment of £3,000 for each apprentice they take on as a new employee between 1 April and 30 September.

This includes apprentices who have previously been made redundant, who will already have acquired some of the knowledge, skills, and behaviours that will make them occupationally competent and a great asset to any business.

The new payment makes it a great time for employers to offer new apprenticeship opportunities, take advantage of existing flexibilities to train apprentices in a way that suits their needs, and contribute to a skills-led recovery.

Employers can apply for the new payment from 1 June, using their Apprenticeship Service Account, where they will also manage the apprenticeship details.  The payment will be paid directly to employers, to encourage them to take on apprentices as new employees by supporting them to meet the range of costs involved.

It is paid in addition to the funding available to employers for training and assessing apprentices, and the extra payments we already make to support employers and providers meet the needs of the youngest apprentices and those with an Education, Health and Care Plan.

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