Skip to content

Fund title: Incentive payments for hiring a new apprentice

Focus of fund/fund aims:

Employers will be able to claim increased incentive payments for apprentices they take on between 1 April 2021 and 30 September 2021

Application deadline:

30 November 2021 (If you have taken on an apprentice before 31 March 2021 you need to claim your payment by 31 May 2021)

Fund description:

To help businesses offer new apprenticeships, the incentive payments for hiring a new apprentice have been increased: employers will be able to claim £3,000 for new apprentices of any age who join their organisation from 1 April 2021 to 30 September 2021.

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

For new apprentices who joined your organisation between 1 August 2020 and 31 March 2021 aged:

  • 16 to 24, employers will receive £2,000
  • 25 and over, employers will receive £1,500

You must apply for these apprentices before 31 May 2021.

Employers can spend their incentive payment on anything to support their organisation’s costs. For example, they could spend it on facilities, uniforms, the apprentice’s travel or their salary.

Apprenticeships must last for at least a year.

The National Apprenticeship Service can provide more information about how apprenticeships work and how they are funded. This includes:

Apprenticeship Levy – help from the government to pay for apprenticeship training. The amount you get depends on whether you pay the apprenticeship levy or not. You pay the levy if you’re an employer with a pay bill over £3 million each year.

Financial incentives for employers – payments of £3,000 (for apprentices joining your organisation between 1 April 2021 and 30 September 2021) and up to £2,000 (for apprentices joining your organisation between 1 August 2020 and 31 March 2021) as detailed in this article.

Additional payments for employers of young apprentices/care leavers – an extra payment of £1,000 for employers hiring an apprentice:

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

Further information:

https://www.gov.uk/employing-an-apprentice