The ESFA are introducing payments to support organisations that take on new apprentices between 1 August 2020 and 31 January 2021.

You can apply for the payment from 1 September 2020, after you add new apprentices to your apprenticeship service account.

Employers will receive up to £3,000 per new apprentice.

You’ll get the payment in 2 equal instalments: 50% after the apprentice completes 90 days of their apprenticeship and the remaining 50% after 365 days. To get the full payment, the apprenticeship must last for at least one year.

The payment is different to apprenticeship levy funds and you can spend it on anything to support your organisation’s costs. For example, you could spend it on facilities, uniforms, your apprentice’s travel or their salary. You do not have to pay it back.

The government have announced that an employer hiring an under 25 apprentice between August 2020 – January 2021 will benefit from an increased incentive scheme.

Apprentice aged 16-18 = £3,000 incentive

Apprentice aged 19-24 = £2,000 incentive

The government have announced that an employer hiring an over 25 apprentice between August 2020 – January 2021 will benefit from an increased incentive scheme.

Apprentice aged 25+ = £1,500 incentive