From 1st August, the Government is paying employers a bonus for talking on new apprentices. Employers get a payment of £2000 for taking on new apprentices under the age of 25 and £1500 for if the apprentices is over 25. And this on top of the existing £1000 incentive for taking on a 16 to 18 year old. So, for every new apprentice recruited who is aged 16 to 18, their employer gets a £3000 payment.
It’s important to note that these incentives are only available for recruiting individuals for NEW apprenticeship positions BEFORE the 31st January 2021. And to claim this incentive, employers must open an online Apprenticeship account if they haven’t already got one. This is straightforward, and TRS can help you do this.
How Much Will It Cost To Train an Apprentice?
These incentives for recruiting an apprentice are in addition to the existing funding available for their training. Here’s a quick reminder of how Apprenticeship funding for training works:
- If your wage bill is below £3m a year,the Government will meet 95% of the cost to train any apprentices. And if you have less than 50 members of staff, the Government will pay 100% of costs.
- If your wage is above £3m a year, you will already be paying the Apprenticeship Levy. And it is this pot of money that pays all costs of training your apprentices.
Use it or lose it!
If your company is an Apprenticeship Levy payer, your payments will be ring fenced to pay for apprenticeship training. There is good news and bad news! The government will top your funds up by another 10% but you must use the money you have built up within 24 months. Otherwise, it is cleared from your account. So use it or lose it!
Apprenticeship incentives: the definitive list
In light of these new incentives from the Chancellor, here is a useful recap on all the financial incentives currently available to employers who recruit apprentices before 31st January 2021/
- £2000 for each new apprentice hired under the age of 25
- £1500 for each new apprentice hired over the aged of 25
- An extra £1000 for every apprentice hired aged between 16 and 18
- A separate grant of £1000 for any new apprentice under the age of 25 with an Education (EHCP) Plan
Other initiatives available to employers
There are a number of other initiatives that are being introduced by the Government to help tackle unemployment. Briefly, they are:
The Government pays six months’ wages for an individual on universal credit or in danger of long term unemployment, who is taken on by an employer
- Job Retention Bonus
Employers receive a one-off bonus of £1,000 for each furloughed employee who is still on the payroll on 31 January 2021. This includes any apprentices who have been furloughed.
Firms can claim a £1000 incentive when they create work experience opportunities under the Traineeship scheme. This initiative is generally for school leavers who might not be quite ready for an apprenticeship or other job or training.
TRS can provide additional detail for each of these initiatives.
TRS: Your Training Partner
TRS can help you navigate and make the most of available Apprenticeship funding. As we emerge from lockdown, it’s clear that there are lots of opportunities for growth in road haulage, logistics and manufacturing. Staff development is key to your success and we are experts in this field. Don’t delay. These new apprenticeship financial incentives are available for a limited time. Call us today to find out how we can help you develop an apprenticeship plan that maximises available funding. For further information, call MD Kevin Birch on 07788 120 608 or fill out our website enquiry form