Incentive payments for apprenticeships in 2020/21

Delivered by Department for Education

The Government has increased incentive payments for hiring a new apprentice. Employers will receive £3,000 for new employees of any age who start their apprenticeship from 1 April 2021 to 30 September 2021.

The incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice:

  • aged 16 to 18 years old
  • under 25 with an education, health and care plan or who has been in the care of their local authority.

Apprentices who joined your organisation before 1 April 2021

For new apprentices who joined your organisation between 1 August 2020 and 31 March 2021 aged:

  • 16 to 24, employers will receive £2,000
  • 25 and over, employers will receive £1,500

You must apply for these apprentices before 31 May 2021.

Apprentices who joined your organisation from 1 April 2021

Employers will receive £3,000 for new employees of any age who start their apprenticeship from 1 April 2021 to 30 September 2021.

You can apply for incentive payments for these apprentices from 1 June 2021.

What you can use the payment for

The payment is different to apprenticeship levy funds, so you can spend it on anything to support your organisation’s costs. For example, on uniforms, or your apprentice’s travel, or their salary. You do not have to pay it back.

Eligibility

You can only apply for new apprentices who joined your organisation between 1 August 2020 and 30 September 2021.

You cannot apply for an existing employee who joined your organisation before 1 August 2020, even if they started an apprenticeship after this date.

How to apply

You can apply for the incentive payment after you add new apprentices to your apprenticeship service account.

You must set up an apprenticeship service account to apply.

Find out more