As lockdown has been extended for another 5 weeks until at least the 8th March, adjusting and adapting to the new normal as a result of COVID-19 is still something that many organisations are getting to grips with.

The impact of the pandemic has affected the ways of working for so many, which is why so many organisations are now looking towards employing apprentices to enhance their skills gaps. Apprentices can help you build skills within your workforce, support your plans for the future and encourage the growth of your organisation.

In recognition of this, throughout England, HM Government have introduced an incentive payment of up to £2,000 for employers that hire new apprentices as part of their growth strategy.

Employers are now eligible to apply for this additional incentive payment if the hire new apprentices from 1st August 2020 to 31st March 2021, including hiring redundant apprentices.

With the continuation of the COVID-19 outbreak, this incentive will help you build the valuable skills that are needed within your organisation. The inclusion of redundant apprentices within this incentive scheme is great for employers and apprentices alike. Some of the benefits to employing a redundant apprentice are:

  • Finding the exact skills and experience that you need within your organisation to enable your future growth.
  • Introducing a work-ready apprentice to your team.
  • Offering support and opportunity to an enthusiastic and keen apprentice who has previously lost their job.
  • A quick return on investment

How does the incentive work?

When you employ a new apprentice starting within your organisation between 1st August 2020 and 31st March 2021 in England, you can apply for the additional boost to your company’s finances through the incentive scheme.

This incentive payment is in addition to the existing £1,000 your organisation will already be receiving when you employ an apprentice that is aged 16-18 years old or under 25 years old with a health, education and care plan or has been in the care of their Local Authority.

The additional incentive is scaled to the following:

  • £2,000 for a newly employed apprentice aged 16-24 years old.
  • £1,500 for a newly employed apprentice aged 25 years and over.

Another great advantage of the incentive scheme is the size of your organisation is irrelevant, the scheme is available to all employers. As long as the apprentice is a new employee with a contract of employment and enrolment on an apprenticeship starting between 1st August 2020 and 31st March 2021 you can apply.

How do I apply for the incentive payment?

If you have chosen Linden Management as your training and apprenticeship partner, we are here to help you with this process of application. As soon as you have added your new apprentice to your apprenticeship service account, we will help you in providing the correct details to submit for your incentive payment.

If you have added a new apprentice employee between the 1st August 2020 and the 31st January 2021, you can start your application for the incentive payment now.

If you are planning on taking on a new apprentice employee between the 1st February 2021 and 31st March 2021 the window to apply for the incentive payment is open from the 1st February 2021 until the 30th April 2021.

The incentive payment is different to your Apprenticeship Levy. The payment can be spent on anything that supports your organisations overheads from apprenticeships salary to utility costs, you do not need to pay the incentive payment back.

Can I employ more than one apprentice under this incentive scheme?

The short answer here is Yes! As long as the apprentices that you employ are taken on as new employees, enrol on apprenticeships and are all done within the timeframes, you are eligible to apply for the incentive for each apprentice that you employ.

Once you have completed your successful application to the scheme, the payments will be made directly to your organisation in two equal instalments, on day 90 and day 365 of the apprenticeship’s employment with you.

Find out more.

If your organisation is ready to start the apprenticeship employee journey and need a training and apprenticeship partner, the team at Linden Management would love to hear from you. Contact today!