incentive tpm

Employer incentives to recruit apprentices

The Government is currently offering incentive payments to employers who recruit apprentices. The conditions of these incentives change on the 1st April 2021. The current conditions and the conditions from 1st April are detailed below. If you need any help understanding them, please get in touch.

Apprenticeship incentive to 31.03.21

Key points:

  • Incentive payment of £2000 for EACH apprentice an employer recruits aged between 16 and 24
  • Incentive payment of £1500 for EACH apprentice an employer recruits aged 25+
  • The incentives will only be paid for NEW apprentices recruited into the organisation, not existing staff
  • The incentive payments are IN ADDITION to the existing £1000 employer incentive paid when they recruit a 16 to 18-year-old, or under age 25 with an education, health and care plan or has been in the care of their local authority. So if an employer recruits someone who falls into either of those categories, they will receive a £2000 incentive payment for recruiting a 16 to 24-year-old. In addition, they will receive the existing £1000 incentive for recruiting a 16 to 18-year-old, or someone who is under 25 with an education, health and care plan or who has been in the care of their local authority. Making a total of £3000.
  • The incentive will be paid only for apprentices recruited between 1st August 2020 and 31st March 2021.
  • These incentives must be claimed by 30th April 2021.
  • Employers must have a digital service account to claim these incentives. Many employers will already have one. It is a simple process to set one up, and tpm is available to help employers if required.
  • The incentive is paid in two instalments: one after 90 days and one after 365 days. To claim the full payment, the apprentice must be in post for a minimum of a year.

For further information on these Apprenticeship recruitment incentives, download the official Government guidance

Apprenticeship incentive from 01.04.21

Key points

  • Incentive payment of £3000 for EACH apprentice an employer recruits, regardless of age
  • The incentives will only be paid for NEW apprentices recruited into the organisation, not existing staff
  • The incentive payments are IN ADDITION to the existing £1000 employer incentive paid when they recruit a 16 to 18-year-old, or someone under the age of 25 with an education, health and care plan or has been in the care of their local authority. So if an employer recruits someone who falls into either of those categories, they will receive £3000 for recruiting a new apprentice, PLUS the existing £1000 incentive for recruiting a 16 to 18-year-old, or someone who is under 25 with an education, health and care plan or who has been in the care of their local authority. Making a total of £4000.
  • The incentive will be paid only for apprentices recruited between 1st April 2021 and 30th September 2021.
  • Employers must have a digital service account to claim these incentives. Many employers will already have one. It is a simple process to set one up, and tpm is available to help employers with this.

Please get in touch if you would like clarification on any of the above.