Employer Incentive Payment for hiring a new apprentice

Employer Incentive Payment for hiring a new apprentice

ESFA; We’re introducing payments to support organisations that take on new apprentices between 1 August 2020 and 31 January 2021.

You can apply for the payment from 1 September 2020, after you add new apprentices to your apprenticeship service account.

The payment is in addition to the existing £1,000 you’ll already get for taking on an apprentice who is:

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

What you’ll get

Employers will receive:

  • £2,000 for apprentices aged 16 to 24
  • £1,500 for apprentices aged 25 and over

You’ll get the payment in 2 equal instalments: 50% after the apprentice completes 90 days of their apprenticeship and the remaining 50% after 365 days. To get the full payment, the apprenticeship must last for at least one year.

We make payments on the 10th working day of each month. We’ll ask for your organisation’s bank details when you apply, so that we can pay you directly.

What you can use the payment for

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

Eligibility

You can only apply for this payment for new apprentices who started their contract of employment between 1 August 2020 and 31 January 2021.

Support apprentices who have been made redundant

You can apply for the payment if you recruit apprentices who have been made redundant, as long as they’re new to your organisation.

Nicola Barratt

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