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05 Mar 20213 minute read

Cash incentives for employers to hire new apprentices doubled

ECAtoday
Cash incentives for employers to hire new apprentices doubled

Apprenticeship financial incentives currently offer firms £2,000 to take on apprentices aged 16 to 24, while those that employ new apprentices aged 25 and over are paid £1,500.

These payments, set to end this month, will be extended for a further six months to September and will increase to £3,000, regardless of the age of the apprentice. This means that any employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire, regardless of the apprentice’s age.

This is on top of the £1,000 payment for new apprentices aged 16 to 18 and those under 25 with an Education, Health and Care Plan, meaning that some employers could receive £4,000 in total.

Payment for Traineeship Work Placements 

The government hopes to increase the number of 16 to 24-year-olds on its Traineeship programme and employers who provide trainees with work experience will continue to be funded at a rate of £1,000 per trainee.

"Portable" apprenticeships set to be launched

The government will introduce a £7 million fund from July 2021 to “help employers in England set up and expand portable apprenticeships”.

The budget document says this will enable people who need to work across multiple projects with different employers, such as in the TV and film industries, to “benefit from the high-quality long-term training that an apprenticeship provides”.

The scheme refers to these as “flexi-job” apprenticeships. The first of these is expected to start in January 2022. 

"Help to Grow" scheme for SMEs to upskill

The budget document says the government will offer a new UK-wide management programme to upskill 30,000 small and medium-sized enterprises over three years.

It states: “Developed in partnership with industry, the programme will combine a national curriculum delivered through business schools with practical case studies and mentoring from experienced business professionals.

“Over 12 weeks, and 90 per cent subsidised by government, this programme will equip SMEs with the tools to grow their businesses and thrive.” Further details will be announced in the coming months.

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