Apply now for the incentive payment for hiring a new apprentice

Apply now for the incentive payment for hiring a new apprentice

Please note: this article was published on 8th June 2021, the information below may now be out of date. For the latest information, visit our Covid-19 Updates here.

There are incentive payments available to employers who hire a new apprentice, with applications now open. 

You will receive £3,000 for new apprentices of any age who have an employment start date of 1 April 2021 to 30 September 2021, and they must have an apprenticeship start date of 1 April 2021 to 30 November 2021.

Employers must apply for these apprentices by the end of 30 November 2021.

To receive the full payment, the apprenticeship must last for at least one year. The apprentice must also have the right to work in England, and be employed by you, a connected company or connected charity as defined by HMRC. See below for more eligibility criteria.

How to apply

Employers can apply for the incentive payment through the ‘Finances’ section in their apprenticeship service account. For a walk-through of the process, employers can watch the support video.

Reminder: steps to take before you apply

There are 6 steps employers need to have completed before they apply for an incentive payment for hiring a new apprentice:

1. They need to have registered an account on the apprenticeship service

2. If they do not pay the apprenticeship levy, they need to have reserved funds in their apprenticeship service account

3. They need to have recruited an apprentice

4. They need to have added their apprentice to their apprenticeship service account

5. They need to have agreed a start date for apprenticeship training to begin with their training provider

6. They need to have accepted the latest version of the ESFA employer agreement

If employers require support with any of these steps, they can watch how-to videos, check the advice on apprenticeships.gov.uk or visit the help portal, where they can access help articles, webchat with an adviser, call (0800 150 600) or text (07588 690018), or email the helpdesk.

Eligibility of apprentice

To employ an apprentice, you need to check and meet the following terms and conditions.

Your apprentice should:

– be 16 years old or older by the end of the summer holidays
– not be in full-time education
– work in a role that is relevant to their apprenticeship
– work enough paid hours each week to undertake sufficient training to achieve their apprenticeship

You cannot apply for an existing employee who joined your organisation before 1 April 2021, even if they started an apprenticeship after this date.

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.

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