Incentive payments for apprenticeships in 2020/21

Delivered by Department for Education

As part of the government’s Plan for Jobs to help kickstart the nation’s economic recovery from coronavirus pandemic, a new incentive payment has been introduced for employers that hire an apprentice between 01 August 2020 and 31 January 2021.

Payments of £2,000 will be made to businesses employing a new apprentice aged 16-24, and £1,500 for apprentices aged 25 or over. 16-18 year olds, or 19-24 year olds who are either a care leaver or have a Local Authority Education, Health and Care plan, will continue to be eligible for the existing £1,000 payment. There is no limit on the number of incentive payments an employer can claim, provided each apprentice meets the criteria.

To qualify, the apprentice must be a new employee to the business and have a contract of employment start date between 1 August 2020 and 31 January 2021.

Find out more by clicking here.

Other new changes to apprenticeships in England from 01 August 2020 include the requirement for all new apprenticeship starts to be on standards, which is part of government’s commitment to drive up the quality of apprenticeships. Apprenticeship frameworks will no longer be available to new starts. A full list of the available apprenticeship standards is available on the Institute for Apprenticeship and Technical Education’s website.

Government has also highlighted that eligibility for apprenticeship funding may change for some businesses because of the United Kingdom exiting the European Union on 31 December 2020. More information and detailed eligibility rules are available here.

Businesses that offer apprenticeships view them as beneficial to their long-term success. Hiring an apprentice is a productive and effective way for any business to grow talent and develop a motivated, skilled and qualified workforce.

As the economy recovers from the coronavirus outbreak, apprenticeships will be more important than ever in helping businesses to recruit the right people, and develop the skills they need to respond to conditions and grow – both now and in the long-term.

For more information about the new Apprenticeship funding in England, please click here.

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