Apprenticeship Incentives

25th March 2021

Did you know as of 1st April 2021 the government have increased the incentive payments to businesses for hiring a new apprentice?

The incentive payments were introduced in August 2020 to help businesses and the economy recover from the impact of the coronavirus (COVID-19) pandemic.

As of 1st April 2021 the government have increased incentive payments for hiring a new apprentice. Employers will receive £3,000 for new employees of any age who start their apprenticeship between 1st April 2021 and 30th September 2021.

This payment is in addition to the existing £1,000 you’ll already get for taking on an apprentice who is:

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

How to apply for the incentive payments:

To apply for the incentive payments you must be set up on the Digital Apprenticeship System. If you are not set up please speak to one of the business development team who can guide you through this process.

When will the payments be made?

Payments are unable to be made until the National Apprenticeship Service have received and verified your organisation and finance details. This can take up to 3 months to process. You’ll get the payment in 2 equal instalments. You’ll receive 50% after the apprentice completes 90 days of their apprenticeship and the remaining 50% after the apprentice completes 365 days. To receive the full payment, the apprenticeship must last for at least one year.

The incentive payments are paid via Bacs on the 14th working day of the month. It usually takes 3 working days to process.

After you apply, you can view applications, estimated payment dates and check the status of each payment in your apprenticeship service account.

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