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Payments for recruiting new apprentices

20 July 2020

On 8 July 2020, Chancellor of the Exchequer Rishi Sunak announced significantly enhanced incentive payments for English employers to recruit new apprentices.

For each new apprentice recruited between 1 August 2020 and 31 January 2021, these enhanced payments are as follows:

•    Apprentice aged 18 and under: £3,000
•    Apprentice aged 19-24: £2,000
•    Apprentice aged 19-24, with an Education, Health and Care Plan: £3,000
•    Apprentice aged 25 and over: £1,500.

A key condition for claiming these enhanced payments is that existing employees will not qualify. This includes any apprentice hired before 1 August, and anyone previously employed by the same employer during the six months preceding 1 August 2020.

Another important condition is that these payments may be claimed only if an employer is already registered with the Education and Skills Funding Agency’s (ESFA’s) Apprenticeship Service.

To begin the process of registering with the ESFA Apprenticeship Service click here.

If you are a non-levy employer and do not wish to deal with the ESFA directly, then it should be possible to ask your college/training provider for help in getting registered and then managing the various processes required by ESFA on your behalf.

Members requiring further guidance or assistance can contact ECA’s Skills Team, either on 020 7313 4800 or EducationandTraining@eca.co.uk.

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