Hiring an apprentice is a productive and effective way for any organisation to grow talent and develop a motivated, skilled and qualified workforce.
Join the growing portfolio of employers and learners benefitting from our award winning training and recruitement provision.
Existing incentives to hire an apprentice include the following and will remain
Employers are not required to pay National Insurance Contributions for apprentices under the age of 25 on earnings below the higher tax rate of £827 a week (£43,000 a year).
£1,000 payment to the employer when they train a 16- to 18-year-old. £500 once the learner has been on the apprenticeship program for 3 months with the remaining £500 after completing 12 months on the apprenticeship program.
£1,000 payment to both the employer and provider when they train a 19- to 24-year-old who has previously been in care or who has a local authority education, health and care plan. Payment timelines as above.
The Government fully fund or contribute to 95% of the cost of the qualification depending on the age of the apprentice and size of the company.
Outline of new extra Government incentives to hire an apprentice
The government’s Plan for Jobs will help to kick-start the nation’s economic recovery. In recognition of the value apprentices can bring to our economy, an incentive payment will be made to employers who hire an apprentice between 1 August 2020 and March 2021. The apprentice must be a new employee to the business, have a contract of employment start date between 1 August 2020 and March 2021 (inclusive) and must not have been employed by the employer within the six months prior to the contract start date.
Claims can start to be made by employers in relation to these apprentices from 1 September 2020. Those claims must be made through the apprenticeship service. There will be two levels of payment based on age. For apprentices aged 16-24 the payment will be £2,000, and for apprentices aged 25 or over the payment will be £1,500. The payment will be made directly to employers in two equal instalments, where the apprentice is still in learning at day 90 and day 365. There will be no limit on the number of incentive payments that an employer can claim for apprentices eligible to receive funding, provided each apprentice meets the criteria, including being a new employee.
Whether you have never recruited an apprentice before or are currently working with apprentices and a training provider I can guarantee that speaking to The STC Group in regards to our services will be the best training and recruitment decision you will make.