Fantastic news for businesses employing an apprentice!

Employers will receive £3,000 for new apprentices!

Following the initial incentive where businesses could claim up to £2,000 for new apprentices (recruited between 1st August 2020 and 31st March 2021), the government has now announced a new incentive.
Where the previous incentive amount was age-dependant, the new incentive has not only been increased in the total amount but is also no longer restricted to specific age groups.

What does the new incentive mean for businesses?

Businesses can receive £3,000 for new employees joining the company to start their apprenticeship between 1st April and 30th September 2021.
The incentive is in addition to the existing £1,000 payment provided for apprentices aged 16 – 18 years, and those under 25 years with an Education, Health, and Care Plan. You can apply for this incentive from 1st June 2021.

How can the incentive money be used?

The incentive payment is different from apprenticeship levy funds. Therefore, you can use it on anything to support your company costs, such as uniforms, travel costs of your apprentices, or their salary. You do not have to pay the money back.

Is the initial incentive still available?

Yes! For apprentice hired between 1st August 2020 and 31st March 2021, you can still apply for the initial incentive, where you can receive £2,000 for each new apprentice recruited in the age group 16 – 24 years, and £1,500 for new apprentices recruited in the age group 25 and over. Applications for this incentive can be made until 30th April 2021.

How do you know if you are eligible for the incentive?

Here are the three key points to check if you are eligible for any of the incentives:
  • You can only apply for the 1st incentive (up to £2,000) if you have new apprentices who joined your company between 1st August 2020 and 31st March 2021.
  • You can only apply for the 2nd incentive (£3,000) if you have new apprentices who join your company between 1st April 2021 and 30th September 2021.
  • You cannot apply for an existing employee who joined your company before 1st August 2020, even if they started an apprenticeship after this date.

How will these incentives be paid?

Payments will be made in two installments, 50% when the apprentice has been in learning for 90 days and the final 50% at 365 days. Grants will be processed through the Apprenticeship Service. For full details of the GOV Apprenticeship Guidelines click on the links provided.
You must set up an apprenticeship service account in order to apply. Once you have added your new apprentice to your apprenticeship service account, you can apply for the incentive payment. (Your details will be checked and verified, which can take up to 3 months.)

You will also need to set up Harriet Ellis as your training provider, add details of your apprentice and apply for the “hire a new apprentice” payment.

Have you been thinking of taking on an apprentice?

Here are some great facts why apprenticeships are beneficial for your business (source:
  • Hiring an apprentice is a productive and effective way to grow talent and develop a motivated, skilled, and qualified workforce.
  • 86% of employers said apprenticeships helped them develop skills relevant to their organisation
  • 78% of employers said apprenticeships helped them improve productivity
  • 74% of employers said apprenticeships helped them improve the quality of their product or service
  • An apprentice can be a sustainable investment in skills to support businesses as the economy recovers.

There is no better time to take on an apprentice! At Harriet Ellis, we always have candidates waiting to start their apprenticeships in the Dental Nurse or Veterinary Care industry.
If you are ready to take on an apprentice or would like to find out more first, contact us today on 01708 776 050 and speak to our apprenticeship team. They will answer all your questions you may have.


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