Apprenticeship Incentive Scheme – have you applied yet?

23rd July 2021

Since June, businesses have been able to claim £3000 for each new apprentice they hire as a new employee between 1 April and 30 September. Have you taken advantage of it yet?

As an accountancy firm, we’re keen to encourage the uptake of such incentives, especially when they help young people. Employers of all sizes in England can use the extra funding to help them take on new apprentices.

What does the Apprenticeship Incentive Scheme entail?

Under the scheme, employers can receive £3000 for new apprentices who are 16 and over and who have an employment start date of 1 April 2021 – 30 September 2021. They must have an apprenticeship start date of between 1 April 2021 – 30 November 2021.

To receive the full £3000, the apprenticeship must last for at least one year. The payment is different to apprenticeship levy funds, so you can spend it on anything to support your organisation’s costs. For example, on uniforms, your apprentice’s travel or their salary. You do not have to pay it back.

You can also claim an additional £1000 if the apprentice is aged 16 to 18 years old, or is under 25 with an Education, Health and Care Plan, or who has been in the care of their local authority.

The cash boost is part of the Government’s ‘Plan for Jobs’, which was launched in 2020 to assist young people in gaining essential skills to find and stay in work. Thousands of businesses across the country have already taken advantage of the original incentive scheme.How to apply for the

Apprenticeship Incentive Scheme

To apply for the incentive payment you must set up an apprenticeship service account and add the new apprentices. Then you can apply for the incentive payment. Find out more and apply on the government’s website. General information can also be found here.

Other incentive schemes to employ young people


The government has said it is also investing £126 million to help create 40,000 more traineeships in England, for 16-24-year olds in 2021-22.
Traineeships are programmes, lasting between 6 weeks and 12 months, that offer young people training and work placements that boost their employability. Employers can also apply for a £1000 cash boost to help them deliver traineeships for up to 10 learners per region, in each of the nine regions of England.

The Kickstart Scheme

The Kickstart Scheme provides funding to create new six-month jobs for 16-24 year olds on Universal Credit who are at risk of long-term unemployment.

Funding for employers covers:

• 100% of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of 6 months
• associated employer National Insurance contributions
• minimum automatic enrolment pension contributions
• a grant of £1,500 per job to cover setup costs and employability support

Employers can spread the job start dates up until 31 December 2021. You’ll get funding until 30 June 2022 if a young person starts their job on 31 December 2021.

You can apply for a Kickstart Scheme grant here.

Our accountancy firm has experts who can advise you on all kinds of ways to get a cash boost for your business, as well as take advantage of tax reliefs. Contact us if we can help you with anything. 



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