UPDATE: The scheme has now been extended to include apprentices hired between 1st October 2021 and 31st January 2022. The same £3,000 payments are available for apprentices of any age.
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Rishi Sunak’s new 2021 budget has undoubtedly made an impact on the world of apprenticeships. The introduction of larger, extended incentive payments presents a tempting opportunity to many employers… but how do they work? At Starting Off, we have broken it all down for you!
Apprenticeship funding rules
There have not been any changes made to the apprenticeship funding rules. Large employers will still be funded from their levy accounts, non-levy companies can receive 95% funding and smaller organisations (49 staff or less) employing 16–18-year-old apprentices will be fully funded.
In addition to these funding rules, employers can also receive £1,000 per apprentice aged 16-18-years-old.
In an effort to increase employment after the devastating effects of COVID -19 and to encourage organisations to take on more apprentices, the government introduced some new apprenticeship incentive payments in August last year. These were due to end in March 2021, however, in the latest update, it was announced there is both an extension to the deadline and an increase in the amount employers can receive.
The incentive payments
In a nutshell, the new 2021 rules mean that after 1st April 2021, employers can receive £3,000 per apprentice recruited until 31st January 2022. This is in addition to the existing £1,000 available for employers of apprentices recruited that are 16 – 18 years of age.
Currently, employers can receive incentive payments for apprentices they have hired between 1st April 2021 and 30th September 2021. The deadline for applying to this funding is 30th November 2021 and the amount employers can get will be the same:
– £3,000 per apprentice hired of any age
– £1,000 extra for apprentices hired aged 16-18 OR under 25 and has an education, health and care plan or has been in the care of their local authority Read more about employer benefits here
To apply for incentive payments, employers must do this through their own apprenticeship account. To learn how you can, watch the video below or contact a member of our team. For apprentices hired between 1st April 2021 and 30th September 2021, you will need to hurry – the deadline for applications closes 30th November 2021. For hires after 1st October, you can apply for your funding from January 2022. Watch the video on applying for incentive payments here
In order to secure funding for your apprenticeship, non-levy employers now have to set up an apprenticeship account and reserve the funding for their apprentice prior to sign up – when you start an apprentice with us, your account manager will provide you with a guide on how to do this.
To take advantage of these new incentive payments and learn more about how you as an employer could benefit from taking on an apprentice, contact our team at Starting Off. We can advise you on the best apprenticeship course to fit your role and match you up with your ideal candidates. Contact us now
