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Apprenticeship Funding


The government has announced that employers of all sizes in England can now apply for extra funding to take on new apprentices.

Under this updated apprenticeship incentive scheme, employers can now apply to claim £3,000 for each new apprentice that they hire of any age between 1 April and 30 September 2021.

Key provisions of the apprenticeship incentive scheme include:

  • employers must set up an apprenticeship service account to claim the incentive payment;
  • the incentive payment is in addition to the £1,000 that employers already receive for hiring an apprentice aged 16 to 18 years old;
  • to receive the full payment, the apprenticeship must last for at least one year;
  • the apprentice’s employment start date must be between 1 April and 30 September 2021 (but the apprenticeship start date can be up to 30 November 2021);
  • this only applies to new apprentices it is not available in respect of existing employees who joined the business before 1 April 2021, even if they started an apprenticeship after this date;
  • employers can apply for the payment after they have added the new apprentice to their apprenticeship service account;
  • the payment will be made in two equal instalments – the first payment is due after the apprentice completes 90 days of their apprenticeship and the second after 365 days; and
  • employers may choose how to spend the cash to support their business.