The Government’s Apprenticeship Service have asked us to remind members that the deadline for employers to apply for the incentive payment for new apprentices hired between August 2020 and March 2021 is fast approaching. Eligible employers must apply for their incentive payment by the end of 31 May 2021.

Important Information:

Incentive payment for apprentices who joined organisations before 1 April 2021

• Employers with apprentices who have a contract of employment start date between 1 August 2020 and 31 March 2021 and who also have a practical period (training) start date between 1 August 2020 and 31 May 2021 are eligible for an incentive payment
• For new apprentices aged 16 to 24, employers will receive £2,000
• For new apprentices aged 25 and over, employers will receive £1,500
• Employers must apply for these apprentices by the end of 31 May 2021
• Employers can visit the guidance page for more details

How to apply

Employers can apply for the incentive payment via the Finances section in their apprenticeship service account. For a walk-through of the process, employers can watch this support video.

Reminder: steps to take before employers apply

There are 6 steps employers need to have completed before they apply for an incentive payment for hiring a new apprentice:

1. They need to have registered an account on the apprenticeship service.
2. If they do not pay the apprenticeship levy, they need to have reserved funds in their apprenticeship service account.
3. They need to have recruited an apprentice.
4. They need to have added their apprentice to their apprenticeship service account.
5. They need to have agreed a start date for apprenticeship training to begin with their training provider.
6. They need to have accepted the latest version of the ESFA employer agreement.

If employers require support with any of these steps, they can watch these how-to videos or visit the Apprenticeship Service help portal, where they can access help articles, webchat with an adviser, call or text the helpline, or email the helpdesk.

Incentive payment for apprentices who join organisations from 1 April 2021

There has been a recent in incentive payments for hiring a new apprentice. Employers could receive £3,000 for new apprentices of any age who join their organisation from 1 April 2021 to 30 September 2021. Visit the guidance page for more details.