The Chancellor recently announced further incentives for employers to hire apprentices over the next six months. Employers hiring new apprentices between August 1st 2020 and January 31st 2021 will be eligible for an additional incentive payment of £2000 for apprentices aged 16-24 and £1500 for apprentices aged 25 and over. Those hiring apprentices aged between 16-18 can claim the new incentive payment in addition to the existing £1000 grant for this age group.

These additional apprenticeship incentive payments cannot be used for existing apprentices within the company, but they can be claimed when hiring an existing apprentice who has been made redundant by another employer. This provides companies with access to a wide talent pool including new school leavers, new apprentices of all ages and those who are already partway through their apprenticeship and come with the benefit of experience and some prior knowledge.

Employers have control over how they spend apprenticeship funds to meet their current and future skill needs. Apprenticeship funding can be used to meet the costs associated with supporting new apprentices, including uniforms, travel and facilities. Levy-paying employers are able to transfer up to 25% of the annual value funds in their apprenticeship services accounts to other employers via the apprenticeship service and this includes training providers.

Employers hiring new apprentices will receive the additional funding in instalments, with 50% being paid 90 days after the apprentice starts and the other 50% paid upon their first year of employment, providing they are still undertaking their apprenticeship with the same employer. Funding can only be accessed for starts funded via the apprenticeship service so those previously accessing funding through legacy contracts will need to register with this service to be eligible. Employers must register their financial details in order to receive the instalments, regardless of their levy-paying status. Claims can be made from September 1st 2020, providing there are apprenticeship agreements and a contract of employment in place.

Employers can claim for as many new apprentices as they like because there is no limit on the number of payments each employer can claim. With statistics showing that 90% of apprentices remain in employment or go onto further education, apprenticeships are a great investment benefiting both businesses and learners.

Oxford Professional Education Group is a main provider of apprenticeship training in the UK. If you would like to discuss your apprenticeship training needs with us in more depth, we would love to hear from you. You can call us on 01865 515 255, send us an email at or fill in a contact form.