A new employer incentive has been announced. Chancellor Rishi Sunak has announced a “brand new bonus” for employers to hire apprentices over the next six months.
Announcing the new employer incentive during his summer statement, Sunak told the House of Commons: “We know apprenticeships work. Ninety-one per cent stay in work or go on to further training.
“For the next six months, we are going to pay employers to create new apprenticeships.
“We will pay businesses to hire young apprentices with a new payment of £2,000 per apprentice. And we will introduce a brand new bonus for businesses to hire apprentices aged 25 and over with a payment of £1,500.”
The Treasury has since published a “plan for jobs” document, which states these payments will be in addition to the existing £1,000 incentive the government already provides for new 16 to 18 year-old apprentices and those aged under 25 with an education, health and care plan where that applies.
It means that employers could receive up to £3,000 for hiring 16 to 18-year-old apprentices from August to January.
Sunak used his speech today to confirm plans for a £2 billion “kickstart” scheme, which will pay the wages of hundreds of thousands of people aged 16 to 24 who are claiming universal credit to take six-month work placements.
He also announced a £111 million investment to triple the scale of “proven” traineeships in 2020-21, an extra £32 million for the National Careers Service to provide tailored jobs advice to a quarter of a million more young people, and £17 million of funding from the adult education budget to almost triple the number of “sector-based work academy placements” next year.
“We will pay businesses to hire young apprentices with a new payment of £2,000 per apprentice. And we will introduce a brand new bonus for businesses to hire apprentices aged 25 and over with a payment of £1,500”
Lastly, Sunak announced plans for a job retention bonus, meaning employers who bring back workers from furlough and continuously employ them until January on at least £520-a-month would receive £1,000 for each employee kept on.
Association of Employment and Learning Providers chief executive Mark Dawe said the chancellor “clearly understands that apprenticeships work and give real jobs to young people with high quality training”.
This information has been taken from FE News and you can read the full article by visiting their website.
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