How to Apply for the New Apprentice Payment Scheme

Written by Calvin Bowers
employinganapperntice

In a bid to try and contain the economic impact of COVID-19, the government are introducing several new incentives and schemes to encourage and support young people to find work.

As research suggests that recessions tend to hit younger people the hardest and the longest, it is more important than ever to try and help provide some security and future opportunities for the next generation.

With this in mind, the government have proposed a specific incentive concerning apprenticeships for young people. You can find all the details below.

New Apprenticeship Hiring Incentive Scheme

If you hire a new apprentice from 1st August 2020 to 31st January 2021, you will be eligible for the added apprentice recruitment payment.

You can apply for this payment after adding apprentices to your apprenticeship service account, and this sum will be in addition to the existing amount you receive for employing an apprentice who:

  • Is aged 16-18
  • Is under 25 and has an education health and care plan

How Much is the Payment?

For apprentices recruited aged 16 to 24, you will receive £2,000.

For apprentices recruited aged 25 and over you will receive £1,500

When Will You Receive the Payment?

Before you can receive the payment, you will have to add the eligible apprentices to your apprenticeship service account and ensure you have your organisation’s bank account details. You can complete this through your digital apprenticeship account.

You will receive the payment in two instalments. The first payment will be after the apprentice has completed 90 days of the apprenticeship and then the second after 365 days.

It’s important to note that payments will only start from January.

What Can You Use the Money For?

Different from the apprenticeship levy, you can use the payment for anything that supports your organisation’s costs. You can use it to recruit and employ new apprentices, pay for uniforms, cover apprentice travel costs and more.

What are the Eligibility Criteria?

There are two points of eligibility criteria:

  1. This payment is only applicable to apprentices who are new to your organisation.
  2. The new apprentices must have started their contract between 1st August 2020 and 31st January 2021.

If you would like some more information on the benefits of recruiting an apprentice, visit our dedicated guide.

If you are looking for additional details regarding the scheme, visit the gov.uk website. 

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Last Updated: Monday June 20 2022
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