Higher incentive payments for apprenticeships

As an employer, you’re eligible for a higher level of incentive payment if your employees are in England and you recruit an apprentice between 1 April 2021 and 30 September 2021. You’ll now receive a payment of £3,000 for each apprentice of any age. Application for these payments can be made between 1 June 2021 to 30 November 2021.

For apprentices taken on between 1 August 2020 and 31 March 2021, there are two levels of incentive payments, based on the apprentice’s age:

  • £2,000 for an apprentice aged 16-24
  • £1,500 for an apprentice aged 25 or over

You need to apply before 31 May 2021 in order to receive incentive payments for this timeframe.

To be eligible for an incentive payment, your apprentice must:

  • Be a new employee to the business
  • Have a contract of employment with a start date between the applicable dates listed above (inclusive)
  • Not have been employed by the business within the six months before the contract start date

You can claim your incentive payment through your apprenticeship account. You’re paid in two equal instalments, as long as the apprentice is still with you on days 90 and 365. If you don’t already have an apprenticeship account, create one by clicking here. For help in setting this up or any questions about apprenticeships for your employees, please contact us.