As part of the economic response to coronavirus, the government has launched ‘A Plan for Jobs 2020’ with a total package of support amounting to £30 billion being made available. Part of this support package was the announcement that the government were “going to pay employers to create new apprenticeships”.
From August 1st 2020 through to 31st January 2021, employers who create vacancies for, and employ new apprentices under the age of 25 will be entitled to receive a payment of £2,000 per apprentice. In addition to the £2,000 payment, employers who take on a 16-18 year old apprentice will still be entitled to receive the existing £1,000 incentive payment (although this is paid in a slightly different way), meaning employers can now claim up to £3,000 for each new 16-18 year old apprentice they employ. For those organisations employing an apprentice who is aged over 25, there is still a financial incentive available in the form of a £1,500 payment.
For employers to be eligible to receive the Apprenticeship Incentive Grant they must meet the following conditions when employing an apprentice:
- The apprentice must be a new employee, (the apprentice must not have been previously employed by you within 6 months of their start date).
- The apprentice must have a contract of employment with a start date of between 1st August 2020 and 31st January 2021.
How to claim your grant
Organisations can claim the Apprenticeship Incentive Grant through the government's Digital Apprenticeship Service (DAS) from 1st September 2020. The payment is made in two equal instalments, one after the apprentice has been in employment for 90 days and the second instalment made after 365 days in employment. For those employers employing an apprentice aged 16-18 the existing £1,000 payment will be made to you by your apprenticeship training provider.
You can download a copy of our guide to claiming the Apprenticeship Incentive Grant by clicking here