On Wednesday 8th July 2020, the government announced its Plan for Jobs. It’s a clear statement of intent that skills, apprenticeships and work based learning are at the centre of policy decisions to rebuild the economy. Now is the time to recruit, invest in young talent and future proof businesses.

The focus is on enabling young people to experience work and develop the knowledge, skills and behaviours for them to gain employment and progress into sustainable jobs.

The government have extended incentive payments for hiring a new apprentice.

Employers are now eligible, if you take on new apprentices from 1 August 2020 to 31 March 2021.

If you take on new apprentices from 1 February 2021, you can apply between 1 February 2021 and 30 April 2021.

The government have introduced payments to support employers who hire new apprentices between 1 August 2020 and 31 March 2021. You can apply for the payment until 30 April 2021.

The payment is in addition to the £1,000 employers already receive for hiring an apprentice, if the apprentice is aged 16 to 18 years old OR under 25 with an education, health and care plan or has been in the care of their local authority.

The new incentive payments for employers who hire new apprentices are:

  • A NEW payment of £2,000 to employers for each new apprentice they hire aged under 25.
  • A NEW payment of £2,000 for employers for each new apprentices they hire aged 19-24.
  • A NEW payment of £1,500 payment for each new apprentice they hire aged 25 and over.

    This will run from 1st August 2020 to 31st March 2021.

  • These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan.

Therefore you get the following incentive payments if you recruit a new apprentice, regardless of the size of your business:

  • 16-18 year olds                 £3000 (existing £1,000 + NEW £2,000)
  • 19-24 year olds                 £2000 NEW
  • 25+                                      £1500 NEW

You need to create your own apprenticeship service account and apply for the incentives. PM Training can support you to create your account and navigate the funding.

Apprenticeship training and apprenticeship standard qualifications also continue to be fully funded for those aged 16-18 for those employed by companies with less than 50 staff. For those with over 50 staff and recruiting apprentices aged 19+ then a co-investment payment or levy payment remains to the case.

FAQ's 

What can you use the payment for?

The payment is different to apprenticeship levy funds, so you can spend it on anything to support your organisation’s costs. For example, on uniforms, your apprentice’s travel, or their salary. You do not have to pay it back.

Eligibility?

You can only apply for new apprentices who joined your organisation from 1 August 2020 to 31 March 2021. This includes if you recruit apprentices who have been made redundant.

You cannot apply for an existing employee who joined your organisation before 1 August 2020, even if they started an apprenticeship after this date.

Where on my account will I find the incentive payment section?

Under the finance section of your account home page you can select ‘hire a new apprentice payment application’.

You will only be able to do this once the apprentice has been added.

Please note if the learner has not yet been added, this could be due to our internal change to the Aptem system. Speak to us if you have any concerns.

When will you get paid?

The government make the payment direct to you in 2 equal instalments for each apprentice. The first payment is after an apprentice completes 90 days of their apprenticeship and the second is after 365 days.

To receive the full payment, the apprenticeship must last for at least one year.

Payments are made by Bacs on the 14th working day of the month. It usually takes 3 working days to process.

After you apply, you can view the estimated payment dates for each apprentice in your apprenticeship service account

 

PM Training can support your business with the following apprenticeship standards;

Construction 

Level 2 Site Carpenter

Engineering

Level 3 Gas Engineering Operative

Manufacturing

Level 2 Lean Manufacturing Operative

Level 2 Trade Supplier

Business, Customer Service and Accountancy

Level 2 Account Finance Assistant

Level 3 Assistant Accountant

Level 2 Customer Service Practitioner

Level 3 Business Administrator

Level 3 Customer Service Specialist

Level 3 Team Leader Supervisor

Housing Management

Level 2 Housing Property Management Assistant

Level 3 Housing Property Management

Level 4 Senior Housing Property Management

 

Investment in Traineeships

The government have also announced additional investment in traineeships (£1,000 support payment to employers for giving a young person the opportunity to experience the world of work), careers education and new Level 2 and 3 courses for 18 & 19 year olds.

A new £2 billion KickStart Scheme will also be launched to create hundreds of thousands of new, fully subsidised jobs for young people across the country. Those aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible. The funding available for each six-month job placement will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.

Confidence in apprenticeships

It reflects a confidence in an apprenticeship system that has undergone a revolution in the last three years, in terms of content, delivery and vision.

If it’s a while since you looked at apprenticeships, or indeed have never really considered them, we think you’ll be pleasantly surprised.

Book a meeting today to speak to a member of our Partnerships team. Our team have an excellent track record in recruitment and business support.

 

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