Increased incentive payment for hiring a new apprentice

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Employers will receive £3,000 for new apprentices of any age who join their organisation from 1 April 2021 to 30 September 2021. 

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. 

Apprentices who joined your organisation from 1 April 2021 

For all new apprentices who join your organisation from 1 April to 30 September 2021, you will receive £3,000.   

You can apply for these apprentices from 1 June 2021 to 30 November 2021. 

You must set up an apprenticeship service account to apply. 

You can apply for the incentive payment after you add new apprentices to your apprenticeship service account. 

Please note: It is the employers' responsibility to apply for the incentive payment for hiring a new apprentice.  This can't be done by the training provider.

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.

Please note: Where you apply for an incentive payment in the same month as being eligible to be paid an instalment, payment of your instalment may be delayed by a month to allow for necessary payment checks.

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 and the apprentice’s previous employer did not receive the first instalment of the incentive payment for hiring a new apprentice.

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