In his spring budget, Rishi Sunak announced that the employer’s cash incentive for all apprentices will double to £3,000 as of 1st April 2021 and is set to continue until September 2021.
The chancellor first introduced the financial incentive for employers in August 2020 and offered firms £2,000 to take on apprentices aged 16 to 24, and those who chose to employ a new apprentice aged 25 and over would only receive £1,500. This is the current incentive scheme which is ending in March. Read here for more information.
The DfE has reported that the take up was considerably lower than they had anticipated. Their data shows that 25,420 employers have submitted claims for the bonus as of 1 February 2021. The Treasury had budgeted nearly 4 times that amount of incentive payments for new apprentice hires.
But there is good news for employers: from April 2021, the incentives will become more generous with a £3,000 payment per hire, regardless of the apprentice’s age.
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 potentially receive £4,000 in total.
Association of Employment and Learning Providers chief executive Jane Hickie said the financial incentives boost could be a “game-changer” and prove to be “particularly attractive to smaller businesses”.
“But if we were in the Treasury’s shoes, we would have channelled the increased incentives to focus on 16- to 24-year-olds only, because that is where the support is really needed and where the stimulus is required,” she added.
You can read the full article here.
DID YOU KNOW?
Parenta can help you hire a new apprentice so you can capitalise on the new and improved employer incentive scheme. We have a team of recruitment specialists who are dedicated to helping you find the ideal apprentice for your setting for FREE, and the good news is in a lot of areas we have candidates that are available immediately for interviews. Think about what you can do for your setting with an additional £4,000!