Employer Incentive for Hiring an Apprentice

Written on 29th, January 2021

Employer Incentive overview: 

The Government have introduced an employer incentive to organisations wishing to hire a new apprentice between 1 August 2020 and 31 March 2021. This incentive is in addition to the £1,000 employers already receive for hiring an apprentice aged between 16-18 years old. If an employer wishes to take on an apprentice aged 16-24, they will receive £2,000. Apprentices aged 25 or over, employers will receive £1,500.

When will the employer get paid? 

The apprentice must be a new employee to the business and have a contract of employment start date between 1 August 2020 and 31 March 2021. The payment will be made directly to employers in two equal instalments. The apprentice must be employed and in learning at day 90 and day 365 which is when the instalments will be made.

This incentive does not apply to existing employees who joined the organisation before 1 August 2020, even if they started an apprenticeship after this date.

How to apply for the incentive? 

Employers must create a digital apprenticeship account on the .GOV website so the incentive can be paid directly, please click here for further information.