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There has never been a better time to take on an apprentice. Last month, further financial incentives were announced by the UK Government for businesses recruiting new Apprentices.
Organisations of any size will now be granted an extra £1,500 for each Apprentice hired between the 1st August and 31st January 2021, with the incentive amount raising to £2,000 if the apprentice is under 25.
Chancellor, Mr Sunak announced the new incentive programme as part of his Summer Statement as he reiterated;
"We know apprenticeships work. Ninety-one percent [of apprentices] stay in work or go onto 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."
Shortly after the initial announcement, it was also clarified that this new incentive payment, would be in addition to the existing £1,000 long standing incentive payment the government already have in place for businesses employing apprentices aged under 19 (and those under 25 with an who are eligible)
In real terms, this could mean a payment of £3000 for an employer hiring a new member of staff aged between 16 and 18 in a suitable apprenticeship role between now and the end of January.
This is of course incredibly welcome news to both businesses, many of whom had put Apprenticeship recruiting and training on hold, and the many thousands of school and college leavers who have had their job offers withdrawn and training programmes cancelled, who will now, hopefully, be able to start their career.
Key Points for Employers
- This extra incentive payment will ONLY be paid for employees whose contracts started on or after 1st August 2020
- Businesses will not be eligible for the incentive if they enrol current employees on an Apprenticeship scheme (unless they joined the company after 1st August 2020)
- New Apprentices MUST be in place and enrolled on a training scheme with a registered training provider before 31st January 2021
- The incentive payments will be made automatically from the UK Government at the end of month 3 and month 12 of the Apprenticeship programme.
- 50% at the end of month 3 and the remaining 50% at the end of month 12.
If you would like more information about the scheme or Apprenticeships in general, email our Partnerships Manager Fiona Bishop firstname.lastname@example.org