How to claim the £3,000 incentive payment for hiring a new apprentice
Employers who hire a new apprentice of any age with a start date between 1 April 2021 and 30 September 2021 can apply for a £3,000 incentive payment. This article explains which employers are eligible, how to apply, and what steps you need to take first.
The payment is just one of a range of financial incentives for employers who hire a new apprentice as part of the Government’s Plan for Jobs.
Which employers are eligible?
The good news is ALL employers with apprentices who have an employment start date between 1 April 2021 and 30 September 2021 and an apprenticeship training start date between 1 April 2021 and 30 November 2021 are eligible for the incentive payment. There are no apprentice age restrictions.
How to apply for the incentive payment for hiring a new apprentice
An employer can apply for the incentive payment for hiring a new apprentice through the Finances section in the apprenticeship service account under ‘Your hire a new apprentice payments’.
Rubitek has just completed an application for the incentive payment for hiring a new apprentice and it was very straightforward. There are a few things an employer must do however before they can apply (detailed below).
Understanding what steps an employer must take before they apply for the incentive payment for hiring a new apprentice is essential
There are a number of steps an employer must complete before applying for an incentive payment for hiring a new apprentice. We’ve included a handy checklist below, along with more information about each of the steps involved.
Step 1: Register for an apprenticeship service account. We’ve included a link to the registration page in the Useful Resources section below.
Step 2: Reserve funds for apprenticeship training. Smaller employers who do not pay the apprenticeship levy can reserve funding to pay for the training and assessment of their apprentices, in the apprenticeship service account.
Step 3: Recruit and appoint an apprentice with an employment start date between 1 April 2021 and 30 September 2021.
Step 4: Add the details of the new apprentice to the apprenticeship service account.
Step 5: Agree a training start date with the apprenticeship training provider between 1 April 2021 and 30 November 2021.
Step 6: Accept the latest version of the ESFA employer agreement.
What happens once you’ve applied?
Payments can’t be made until an employer application has been received via the apprenticeship service account and verified which can take up to 80 days. One the application has been verified, the incentive payment will be made via Bacs in 2 equal instalments of £1,500 for each apprentice. The first payment is due after an apprentice completes 90 days of their apprenticeship, and the second is due after 365 days. Payments will be made on the 14th working day of the month and employers can view applications, estimated payment dates and check the status of each payment directly in the apprenticeship service account.
· Create an Apprenticeship Service Account online: https://accounts.manage-apprenticeships.service.gov.uk
· Incentive payments for hiring a new apprentice: https://www.gov.uk/guidance/incentive-payments-for-hiring-a-new-apprentice?utm_source=businessupdate&utm_medium=newsletter&utm_campaign=incentivesp2
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