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Businesses can claim £3,000 for each new apprentice hired as an employee from 1 April until 30 September. The move was previously announced by chancellor Rishi Sunak in the Spring Budget.
The cash incentive is designed to help more employers invest in the skilled workforce they need for the future. It previously stood at £1,500 for an apprentice aged 25 or over, or £2,000 for an apprentice aged 16-24.
The incentive is paid in addition to the funding available to employers for training and assessing apprentices. Last month, manufacturers’ organisation Make UK reported that more than £1bn in apprenticeship levy money went unspent in the nine months from May 2020, after the funds expired.
Unlike the levy, companies can decide how to spend the cash incentive – options might include travel costs, uniforms or covering part of a salary.
Apprenticeships and skills minister Gillian Keegan said: “Apprenticeships are a fantastic way for employers large and small to grow their businesses and will continue to play a key role in our economic recovery.
“This cash boost will help even more employers to invest in their future workforce, creating more high-quality apprenticeship opportunities so businesses have the skilled talent pipeline they need to thrive, not just today but also in the future.”
Thousands of businesses across the country have already taken advantage of the original incentive scheme, which was launched in July last year.
The government is also investing £126m to help create 40,000 more traineeships in England, for 16-24-year-olds in 2021-22. Traineeships last between six weeks and 12 months, offering young people training and work placements to boost employability and bridge skills gaps.
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