New Government Incentives to hire apprentices

Apprenticeships | Kiran Kapur | 17 March 2021

The UK Government is offering financial incentives to organisations to recruit apprentices before 1st September 2021

The UK Government is offering financial incentives to organisations to recruit apprentices. According to the Government,

Hiring an apprentice is a productive and effective way to grow talent and develop a motivated, skilled and qualified workforce.
* 86% of employers said apprenticeships helped them develop skills relevant to their organisation
* 78% of employers said apprenticeships helped them improve productivity
* 74% of employers said apprenticeships helped them improve the quality of their product or service
An apprentice can be a sustainable investment in skills to support businesses as the economy recovers.

Incentives only apply to apprentice you have hired - it does not cover existing employees who joined your organisation before 1 August 2020, even if they started an apprenticeship after this date. The incentives cover two time periods:

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
Employers must apply for these apprentices before 31 May 2021.

Apprentices who joined your organisation from 1 April 2021 to 30th Sept 2021

Employers will receive £3,000 for new employees of any age who start their apprenticeship from 1 April 2021 to 30 September 2021. There are no age restrictions.
Employers can apply for incentive payments for these apprentices from 1 June 2021.

You can find more details on the incentive scheme for hiring a new apprentice here.


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