Department for Education
Employers encouraged to sign up for apprentice cash boost
New incentives launched to help businesses invest in the skills they need to recover and grow.
Employers of all sizes are being invited to apply for generous cash incentives to help them take on new apprentices and get more people into work, Apprenticeships and Skills Minister, Gillian Keegan announced yesterday (1 September).
Apprenticeships are a great way to get ahead in a wide range of exciting industries, and they will also play a vital role in delivering the skills employers and the economy need to recover after the coronavirus outbreak.
As part of the Government’s Plan for Jobs, employers are being offered £2,000 for each new apprentice they hire aged under 25, and £1,500 for each newly recruited apprentice aged 25 and over. This includes taking on an apprentice who has been made redundant.
The cash boost is designed to support employers to cover the cost of recruiting an apprentice such as providing facilities, uniforms, helping with travel costs or to help pay their salary.
Employers who want to take advantage of the offer can apply through the government’s award-winning digital apprenticeship service.
Gillian Keegan, Minister for Apprenticeships and Skills said:
We recognise the huge impact coronavirus has had on individuals and businesses up and down the country.
Through our Plan for Jobs we have taken unprecedented steps to protect, support and create jobs, including driving more high quality apprenticeship opportunities to help get our economy moving.
To support this, employers can sign up to receive £2,000 for each new apprentice they take on aged under 25 and £1,500 for those aged 25 and over. This offer will help more employers large and small to invest in the skilled workforce they need to help them recover and grow.
I strongly encourage as many employers as possible to apply now, and take advantage of this generous offer whether it is used to recruit apprentices for the first time or expand their current apprenticeship offer.
The Chancellor of the Exchequer said:
Apprenticeships play a crucial role in developing the skills people need, particularly young people, as they seek work in these challenging times.
I urge every employer, big or small, national or local, to sign up to our offer and support apprentices as we continue our economic recovery. Our Plan for Jobs will create, support and protect jobs across all regions of the UK, and ensure our economy is fit for the future.
This new cash incentive for employers is on top of the existing £1,000 payment for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan.
To support people, particularly young people, affected by Covid-19 the Government has also announced a range of support including:
- £111 million boost to triple the number of traineeships available across England – the largest-ever expansion of traineeships – to help make sure more 16-24 year olds have the skills, experience and confidence they need to enter the world of work.
- A new £2 billion Kick-start Scheme to create hundreds of thousands of new, fully subsidised jobs for young people across the country.
- £17million is being invested to increase participation in our sector-based work academies, to upskill job seekers to fill locally identified vacancies.
- A Job Retention Bonus – a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021.
- £111 million to support school and college leavers at risk of becoming unemployed to do a fully funded optional extra year of study.
The Government is also providing a new online and telephone support service for apprentices who have lost their jobs during the Covid-19 outbreak.
The Redundancy Support Service for Apprentices (ReSSA) ensures apprentices can access services that can provide financial, legal, health and wellbeing support, and help them get back on track and on the path to a new career.
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