How you can make the most of the new apprenticeship incentive
If you work at an organisation taking on new apprentices in the next few months, good news for you: the Education and Skills Funding Agency (EFSA) just announced a new incentive you can apply for starting on September 1. Below is everything you need to know about the requirements, who can apply, and what the payments can be used for.
Who is eligible for the incentive?
If you’ve hired new apprentices since August 1 of this year, or are planning to do so before January 31 of 2021, you can apply from September 1. You just need to add those apprentices to your service account first. Click here to apply, and make sure you have both your bank account information and your new apprentice’s details at the ready.
You can also apply for the payment if you’ve recently recruited an apprentice who was made redundant by their previous employer, as long as they haven’t worked at your organisation in the past six months.
What the incentive provides
For each apprentice aged 16 to 24, employers will receive £2,000, and for apprentices older than 25, employers will receive £1,500. The payment will come in two installments, half at the apprentice’s 90-day mark, and the remaining half after 365 days. That means, to ensure the incentive is paid in full, the apprentice must be with your organisation for at least a year.
This new incentive is in addition to the £1,000 levy you’re already eligible for when you take on an apprentice who is between 16 and 18 years old, or under 25 with an education and healthcare plan.
What you can use the apprenticeship incentive for
Unlike the apprenticeship levy funds (we have lots of ideas on how to spend that), this payment can be applied to any cost your organisation might have. That could be facility costs, uniforms, travel for your apprentice or the apprentice’s salary.
Why not take advantage of this new apprenticeship incentive and make sure you apply before the end of the year? You’ll be glad you did.
For more than 20 years, Avado has been providing professional training and qualifications that transform businesses. In 2018, Ofsted ‘Outstanding’ apprenticeship provider, Arch Apprenticeships, combined forces with Avado to become one of the most exciting education providers in the UK.
Since the Apprenticeship Levy was first announced in 2015, we’ve been consulting with businesses across the country on how to make the most out of their levy funds. From finance and HR to marketing and IT, we provide digital-first apprenticeships that will engage your workforce.