Apprenticeship Funding & Costs for Employers
Recruit an Apprentice Incentive
Up to 31st March 2021
The Government has announced the release of a new incentive payment for any employer who hires an apprentice from 1st August 2020 to 31st March 2021
16-24’s: £2000 incentive for every NEW apprenticeship created between 01/08/2020 and 31/03/2021
25+ £1500 incentive for every NEW apprenticeship created between 01/08/2020 and 31/03/2021
Terms and conditions apply
From 1st April 2021
The incentive has been increased to £3000, regardless of apprentice age!
The Government has announced they will be increasing the incentive payment for hiring an apprentice. They will be offering £3000 per newly recruited apprentice, regardless of age from 1st April 2021 to 30th September 2021. Claims are made via the DAS portal by the employer, claim window for this new incentive opens June 1, 2021. This scheme replaces the current job creation scheme, which ends on Mar 31, 2021.
From September 2020
For the first time ever, the government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee.
Employers in England will be given £1,000 for each work experience placement they offer to people aged 16-18 or 19+ with Education and Healthcare Plan as part of plans to reduce the level of unemployment among young people. This applies to all new Traineeship starts from 01/09/2020 to 31st July 2022. The maximum of 10 per region, per company.
Terms and conditions apply
If the Apprenticeship Levy applies to your business, you can use the funds towards the cost of training. The Government will provide 95% (or 100% in some cases) of the balance to cover the cost of your training if you are a non-levy paying employer, but some employers may be required to contribute the remaining 5% towards the costs of training.
If you hire an apprentice you will be required to pay at least the minimum wage for apprenticeships which is set by the Government. You can find the most up to date information by visiting https://www.gov.uk/apprenticeships-guide/pay-and-conditions
Your business may be eligible for 100% funding if your annual wage bill is less than £3 million, and you have less than 50 employees. In this case, you will receive 100% funding for any Apprentices aged 16-18, and 90% for any aged 19+. You will be required to contribute the remaining 5% of the funding costs for any apprentices over the age of 19.
Aside from the Apprenticeship Levy, there are also other sources of funding available for employers.
Teen Grant: The Teen Grant is a £1000 incentive for every new apprenticeship that starts from 1st May 2017 for learners aged between 16-18. Payable at the end of month 3 and month 12 of each learner’s qualification. This incentive also applies to any learner aged 19-24 that comes from a care background.
Entrepreneur Offer: For small businesses employing less than 50 employees, 16-18 apprentices remain contribution free. This incentive also applies to any learner aged 19-24 that comes from a care background.