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Government incentive payments for hiring a new apprentice

Are you an employer looking to hire an apprentice? If so there is some good news. From the 1st of August 2020 until the 31st of January 2021, the Government are offering incentive payments for any employers that hire an apprentice.

This new payment is in addition to the £1,000 that employers already receive for hiring an apprentices aged 16 to 18 or who is under 25 and has an education or health and care plan or is in the care of local authority.

What type of incentives are available for employers?

Employers will receive £2,000 for apprentices aged 16 to 24 and £1,500 for apprentices 25 and over. This will be paid over two instalments. The first instalment which is 50% of the total will be paid after apprentices complete 90 days on programme. The next 50% will be paid after 365 days.

When can employers apply for the new incentive?

An employer can apply for this apprenticeship incentive payment from the 1st of September 2020. This can be done after apprentices are added to the employer’s apprenticeships service account which is used to claim funding. To receive this, employers will need to provide payment details. The new apprenticeship incentive payment can be claimed for all apprentices who started their contract of employment between 1st of August 2020 and 31st of January 2021.

What can the apprenticeship incentive payment be used for?

This payment is not the same as the apprenticeship levy funding so it can be spent on anything to support employer costs. It can even be used to pay your apprentices salary and does not have to be used to support their training.

Can employers use this to support apprentices that have been made redundant?

Yes, as an employer, you can claim still claim for this when hiring an apprentice that is new to your organisation. Have a look at support for apprentices that have been made redundant for more information on this.

Reference: https://www.gov.uk/guidance/incentive-payments-for-hiring-a-new-apprentice

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