2021 Budget announcement
Financial incentives were first introduced by Rishi Sunak in August 2020 and currently offer businesses and organisations £2,000 to take on apprentices aged 16 to 24, while those that employ new apprentices aged 25 and over are paid £1,500.
But take-up has been low. Latest Department for Education data shows that 25,420 employers have submitted claims for the bonus as of 1st February 2021. The Treasury had budgeted for up to 100,000 incentive payments for new apprentice hires.
The current scheme ends in March, but The Chancellor has new plans which will be unveiled in his budget this week to extend the apprenticeships scheme until September 2021.
From April, the incentives will become more generous with a £3,000 payment per hire, regardless of the apprentice’s age.
This is on top of the £1,000 payment provided for new apprentices aged 16 to 18 and those under 25 with an Education, Health and Care Plan, meaning that some employers could receive £4,000 in total.