A £3,000 incentive payment is now available to businesses taking on a new apprentice.
From Tuesday 1 June, businesses will be able to claim £3,000 for each new apprentice they hire as first announced at the Budget earlier this year.
These payments will be available to employers who hire (or have hired) a new apprentice between 1 April 2021 through to 30 September 2021.
Please note that this is different to the apprenticeship levy funds. The Government state “you can spend it on anything to support your organisation’s costs. For example, on uniforms, your apprentice’s travel or their salary. You do not have to pay it back”.
Please also note that the incentive payment is in addition to the £1,000 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.
- You can only apply for new apprentices who joined your organisation from 1 April 2021 to 30 September 2021.
- You cannot apply for an existing employee who joined your organisation before 1 April 2021, even if they started an apprenticeship after this date.
- It is important to note that the apprenticeship must last for at least one year for your business to receive the full payment.
- How to apply
Please find the application portal here or at this link https://accounts.manage-apprenticeships.service.gov.uk/
- How and when you will be paid
The Government cannot make any payments until they have received and verified your organisation and finance details. This could take up to 80 days and they may contact someone from your organisation.
Payments will be made in 2 equal instalments for each apprentice. The first payment is due after an apprentice completes 90 days of their apprenticeship and the second is due after 365 days. Payments will be made by 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.
Please find the link to the Government’s guidance on this HERE.