Apprenticeship incentive period extended

Businesses in England taking on apprentices this year can apply for a £3,000 grant until 31^st January 2022.

Taking on apprentices will continue to pay dividends – and not just for businesses looking to future-proof their workforce.

That’s according to the UK government, who have announced that the £3,000 payment currently being awarded to any business in England taking on employees from 1^st April this year is being extended until the end of January 2022.

Incentive eligibility

Any organisation which has taken on a new apprentice or apprentices since 1^st April this year can apply for the grant by setting up an account through GOV.UK’s apprenticeship service account portal.

For any business to receive the full payment, the apprenticeship they offer must last at least one year and the apprenticeship start date must be on or later than 1^st April this year.

Unfortunately, if you have apprentices who joined your organisation before 1^st April 2021, they will not qualify your business for the grant.

Organisations can use the incentive payment differently to the apprenticeship levy funds, meaning it can be spent on anything to support your business’ costs, such as uniforms, the apprentice’s travel, or their salary. What’s more, your business won’t have to pay it back.

You cannot apply for an existing employee who joined your organisation before 1^st April 2021, even if they started an apprenticeship after this date.

Apply for the new apprentice payment

To receive this £3,000 payment, England-based businesses must submit an application for each eligible apprentice using the UK government site’s apprenticeship service account, where business owners will firstly need to add apprentices to the account.

Applications close on 30^th November 2021.

When do businesses get paid?

The UK government advises that it could take up to 80 days for a business’ finance details and organisational background to be verified; they may also contact the business which is applying, directly.

The incentive payment should arrive in two equal instalments for each apprentice, with the first payment due after an apprentice completes 90 days of their apprenticeship and the second due after 365 days.

The apprenticeship portal will allow employers to check on their application status and view estimated payment dates.

Is your England-based business looking for a top-class training provider for your apprentices? Check out our industry-leading facilities at  GTG West Midlands