New cash funding for employers who recruit an apprentice

01 Apr 2021

Employers in England who take on an apprentice between 1 April and 30 September 2021 will be able to claim £3,000.

This is on top of the £1,000 payment provided for new apprentices aged 16 to 18 and those under 25 with an Education, Health and Care Plan, meaning that some employers could receive £4,000 in total.

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, 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.

When you will get paid

The Government scheme administrator cannot make any payments (via Bacs on the 14th day of the month) until they have received and verified your organisation and finance details, which could take up to three months. You can make a claim from 1 June 2021.

Payments made in two equal instalments for each apprentice. The first payment is sent after an apprentice completes 90 days of their apprenticeship and the second is sent after 365 days.

After you apply, you can view applications, estimated payment dates and check the status of each payment in your apprenticeship service account.

Recruiting an apprentice

For employers who want to take on apprentices, there are two steps to choosing the right apprenticeship training, click here.

Scotland, Wales and Northern Ireland

For funding information under the devolved administrations, refer to the Barnett formula.