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Incentive payments for hiring a new apprentice

Posted on 29th July 2020 by Alexis Outram - News

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The government’s Plan for Jobs aims to kickstart the nation’s economic recovery. In recognition of the value that apprentices can bring to our economy, an incentive payment will be made to employers who hire an apprentice between 1st August 2020 and 31st January 2021.

The apprentice must be a new employee to the business, have a contract of employment start date between 1st August 2020 and 31st January 2021 (inclusive) and must not have been employed by the employer within six months prior to the contract start date.

Claims can start to be made by employers in relation to these apprentices from 1st September 2020. The 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 the employer 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, provided each apprentice meets the criteria, including being a new employee.

Further information on apprenticeship schemes and funding can be found at:

When taking on an apprentice it is important, if we undertake your payroll, that you advise us so that payroll processing and calculations takes into account any potential implications for National Minimum Wage and National Insurance Contributions.

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