Payments for employers who hire new apprentices

The measure

The government will extend and increase the incentive payments made by the Education and Skills Funding Agency to employers in England who hire new apprentices apprentice between 1 April 2021 and 30 September 2021. Employers will receive £3,000 per new hire, compared with £1,500 per new apprentice hire (or £2,000 for those aged under 25) under the current scheme, which will expire on 31 March 2021.

This is in addition to the existing £1,000 payment the government provides for all new apprentices aged 16-18 years and those aged under 25 with an Education, Health and Care Plan, where that applies.

To claim, employers must set up an apprenticeship service account to apply for the incentive payment. 


Who will be affected?

All employers in England who hire apprentices may benefit.


When will the measure come into effect?

This measure will apply for new apprentice hires in the period between 1 April 2021 and 30 September 2021.

Our view

Employers in England will welcome the payments potentially available to support the hire of new apprentices in this period, although many will be disappointed that the window during which they can benefit from the increased figures is so short.