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.

From the 1 June 2021, employers will be able to apply for an increased payment of £3,000 for each apprentice they take on as a new employee between 1 April and 30 September 2021.

This includes apprentices who have previously been made redundant where the payment was not received by the former employer. These apprentices will already have acquired some of the knowledge, skills, and behaviours that will help them towards achieving occupationally competency and would be 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.

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.

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 additional funding we already provide to support employers and providers meet the needs of the apprentices that are:

  • Aged between 16 and 18 years old, or
  • Aged between 19 and 24 years old and has either: an Education, Health and Care plan provided by their local authority; or has been in the care of their local authority

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