Apprenticeship Incentives

If you need help and advice on how to claim your apprenticeship incentives, this article offers some useful information and resources to help you do so.

Apprenticeship Incentives

Apprenticeship Incentives

If you need help and advice on how to claim your apprenticeship incentives, this article offers some useful information and resources to help you do so.

Apprenticeship Incentives – An Overview

The ESFA introduced payments to support employers who hired new apprentices between 1 August 2020 and 31 March 2021. Including £2,000 for 16 to 24-year-olds and £1,500 for those 25 and over. You can apply for these payments until 31 May 2021.

Following the Chancellor of the Exchequer’s announcement in April 2021, for eligible apprentices of any age who start employment from 1 April 2021 to 30 September 2021, employers will receive £3,000. You can apply for incentive payments for these apprentices from 1 June 2021 to 30 November 2021.

The incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice:

  • aged 16 to 18 years old
  • under 25 with an education, health and care plan or who has been in the care of their local authority

Apprentices will have an additional two months after the deadline of 30 September 2021 (until 30 November 2021) to start their training programme. This is to allow for probationary periods and sign-up processes to occur.

Furthermore, employers will also receive a National Insurance exemption if the apprentice is aged under 25 and a 95% subsidy of the training costs (if not paying via the apprenticeship levy). Levy paying employers can utilise their levy pots.

It is also worth being aware that non-levy employers can now reserve apprenticeship funds up to six months in advance. This means that employers who do not pay the Apprenticeship Levy are already able to reserve funds for their Autumn intake of new starts.

These incentives are claimed on the Digital Apprenticeship Service, so you will need your organisation’s bank details so the ESFA can pay your organisation directly.

Digital Apprenticeship Service for non-levy employers

Employers can also make up to 10 new reservations. From 1 April 2021, the ESFA will reset reservation levels for employers who do not pay the Apprenticeship Levy. This will enable employers to make up to 10 new reservations to fund new apprenticeship starts in the financial year 2021 to 2022.

Employers can also reserve funds up to 6 months in advance. From 1 April 2021, the ESFA is extending the reservation period for employers who do not pay the Apprenticeship Levy from 3 to 6 months. This means that from 1 April, these employers will be able to reserve funds up to 6 months before an apprenticeship is planned to start. Therefore, employers will be able to reserve funds for September starts from April 2021 and October starts from May 2021!

Eligibility

The deadline for new apprentices who joined your organisation from 1 August 2020 to 31 March 2021 has now passed (31 May 2021). However, you can apply from 1 June 2021 to 30 November 2021 for apprentices who joined your organisation from 1 April 2021 to 30 September 2021. This also 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.

How to apply

You can apply for an incentive payment after you have added new apprentices to your digital apprenticeship service account. The ESFA has produced a video step by step guide detailing how to make an incentive claim via the Digital Apprenticeship Service.

claiming apprenticeship incentives

When you’ll get paid

This is a direct agreement between your organisation and the ESFA. Payment is made in two 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. Bacs provides payments on the 14th working day of the month (usually taking three working days to process). After you apply, you can view the estimated payment dates for each apprentice in your digital apprenticeship service account.

You can find out more about our apprenticeships here and some employer resources here.

OUR APPRENTICESHIP PROGRAMMES

We offer a range of accounting and leadership programmes with different entry levels and responsibilities. Click here to find out more.

Please get in touch with Andy Buncall if you need to further discuss your upcoming training needs or want to start progressing starters for any of our apprenticeship programmes.

More apprenticeships news and insights:

First Intuition for Employers Community

Accountancy apprenticeships – an employer’s view

Apprenticeships: Employer insights

Qualifications2022

New AAT Syllabus Change 2022 – Why does it matter now?

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