Extra cash if you hire a new apprentice

Extra cash if you hire a new apprentice. Two women in an office looking at a computer.

The government has announced that employers of all sizes in England can now apply for extra cash if they hire a new apprentice. What’s the deal?

Under the apprenticeship incentive scheme you can now apply to claim £3,000 for each new apprentice that you hire of any age between 1 April and 30 September 2021. This is a significant improvement on the previous apprenticeship incentive scheme that ran between 1 August 2020 and 31 March 2021(under which you could claim £2,000 for each new apprentice hired aged under 25, and £1,500 for each new apprentice hired aged 25 and over).

Key provisions of the apprenticeship incentive scheme include:

  • You must set up an apprenticeship service account to claim the extra cash if you hire a new apprentice.
  • The incentive payment is in addition to the £1,000 that employers already receive for hiring an apprentice aged 16 to 18 years old (or under 25 with an education, health and care plan or who has been in the care of their local authority). It’s also in addition to the funding available to you for training and assessing apprentices.
  • To receive the full payment, the apprenticeship must last for at least one year.
  • The apprentice’s employment start date must be between 1 April and 30 September 2021 (but the apprenticeship start date can be up to 30 November 2021.
  • You can only apply for new apprentices – you can’t apply for an existing employee who joined your business before 1 April 2021, even if they started an apprenticeship after this date.
  • You can apply for the payment after you’ve added the new apprentice to your apprenticeship service account.
  • The payment will be made in two equal instalments – the first payment is due after the apprentice completes 90 days of their apprenticeship and the second is due after 365 days.
  • You can choose how to spend the cash to support the costs of your business.

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