Employer cash incentives double to £3,000 for new apprentices

03 Mar 2021
Employer cash incentives double to £3,000 for new apprentices

In Today's Budget, Chancellor Rishi Sunak announced that employer incentives for employing a new apprentice is set to increase to £3,000.

Currently, firms in England are given £2,000 for every new apprentice they take on under the age of 25, and £1,500 for those over 25. 

Sunak has promised to increase the cash incentives for employers who take on a new apprentice from 1st April 2021 to £3,000 - regardless of age - and the scheme has been extended until September 2021. 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 a payment of up to £4,000.

Employers can use the incentive funding to help meet any of the costs associated with supporting a new apprentice in their workplace including: facilities, uniforms, and apprentice travel. It can also contribute to meeting the costs of an apprentice’s wages. Individual employers can choose how to spend the money to support their apprentices depending on their individual circumstances.

Who can claim?
The grants are available to both levy and non-levy paying employers which take on a new apprentice from April 2021 until September 2021. New apprentices cannot be existing employees. 

Reserving your funding
You must reserve your funding by registering with the Apprenticeship Service prior to your apprentice starting.

We can help to guide you through this process.

The money will be paid in instalments, with 50% of the total paid at roughly 90 days from the apprentice’s start date, and the remaining 50% paid roughly 365 days from the apprentice’s start date, subject to the apprentice still being in employment (with the same employer) and undertaking their apprenticeship at these times.

Incentives for Trainees

There is also an extra boost for Traineeships. Unemployment is at its highest level in almost five years, with younger and typically lower-paid workers bearing the brunt of job losses. As a result, an additional £126 million to further increase traineeship numbers by an extra 40,000 in 2021/22 has been announced. This will include £22 million to continue the employer incentive payment of £1,000 for new trainees. 

To take advantage of the new and extended incentives, contact us now on 01743 454810 or email


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