Government Apprentice Incentive
Employers can apply for a payment of £1,000 for new apprentices
Employers and training providers could get £1,000 each for taking on an apprentice who is either:
- aged 16 to 18 years old, or
- aged 19 to 25 years old and has an education, health and care (EHC) plan or has been in the care of their local authority
Apprenticeship grant for employers
The Apprenticeship grant for employers of apprentices aims to support businesses to grow by providing incentives to assist in offering young people employment through the Apprenticeship programme.
How will this support be given to employers?
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.
Am I eligible to receive this new grant?
All you need to apply is the details of the apprentice and your organisation’s bank details.
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.
Support apprentices who have been made redundant
Apprentices who have been made redundant may already have the knowledge, skills and behaviours to add value to your organisation. These apprentices can:
- fill key skill gaps in your organisation or your existing apprenticeship vacancies
- continue with their apprenticeship and build on their existing skills
You can apply for the payment if you recruit apprentices who have been made redundant, as long as they’re new to your organisation.
What is an employer’s commitment?
Employers will sign an agreement which will include:
Confirmation of the number of apprentices they will be taking on as a result of this incentive (to a maximum of 5 payments)
Confirmation that they wouldn’t have taken the apprentice on without this additional incentive
Confirmation that they have not taken on an apprentice in the previous 12 months*
A commitment to employ the apprentice for a minimum of 12 months or the time it takes to complete the Apprenticeship framework, whichever is the greater.
Confirmation that they are aware of and do not breach any state aid rules.
Agreement to pay the minimum Apprenticeship wage of £3.30 per hour from October 2015 – although this is a minimum and most employers pay more.
*12 months is calculated from the ILR start date of the new apprentice. The employer is not eligible if they have started an apprentice within that 12 month period.
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