Apprentice Hire Incentive
Posted on 27th September 2021 at 17:30
Incentive payments for employers who hire a new apprentice between 1 April 2021 and 30 September 2021.
Time is running out for businesses to apply for the additional £3,000 cash boost and take advantage of the scheme when hiring an apprentice. The incentive payment is in addition to the £1,000 that employers already receive for hiring an apprentice.
Criteria:
For employers to apply, an apprentice service account must be set up (details can be found HERE):
To be eligible, apprentices must be:
♦ aged 16 to 18 years old
♦ aged 19 to 24 with an education, health and care plan or who has been in the care of their local authority
The apprenticeship must last for at least one year in order to receive the payment
About the scheme:
To be eligible for the incentive, an apprentice must have started working for a business between 1 April and 30 September, while their apprenticeship must officially start before 30 November 2021. Applications to the scheme close on the 30th November 2021.
How the scheme works - Take for example, an employee who started working for your business during August and then started an apprenticeship in October, then you will still be able to apply for the funding.
There are no rules currently on how employers can spend the money. The government does however suggest that it is used to cover apprentice costs such as travel expenses or equipment etc.
When the payment will be made from the scheme:
The government has advised it can take up to 80 days to verify the details received regarding the apprenticeship, and may contact the organisation as necessary .
For each apprentice hired (within the dates of the scheme), businesses will then receive two installments, the first one after the completed 90 days and the final payment of £1,500, after the apprentice has completed 365 days (the full year). Payments will be made via Bacs on the 14th working day of the month. It normally takes 3 working days to process.
What are the benefits of employing an apprentice?
♦ you can teach people on the job
♦ apprentices are often highly motivated and dedicated to learning, therefore increasing the likelihood of having a loyal and dedicated workforce longer term.
For advice on the scheme and all employment matters, please contact us and through our association with HR specialists, we can help guide and assist.
Disclaimer:
Whilst every effort in ensuring the accuracy of the content of these notes has been considered, we cannot be held responsible in any way in regards to any consequences and/or decisions arising from the information provided. For specialist advice tailored to your individual circumstances - please seek professional advice and contact us on the above details.
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