New apprenticeship positions created between 1st August 2020 and 31st January 2021 are eligible for Government minimum incentive payments of £1500 rising to £3000 depending on the apprenticeship age.
As part of the Government's Covid-19 response new incentive payments were announced for new start apprenticeships in addition to any existing incentive payments. This highlights the trust that politicians now have in the new apprenticeship system and the excellence of the learning that is being delivered to apprentices.
The incentive payments breakdown as follows:
16-18 apprentices - NEW £2000 incentive payment in addition to the existing £1000 payment
19-24 apprentices - NEW £2000 incentive payment
25+ apprentices - NEW £1500 incentive payment.
19-24 Apprentices who have an Education, Health and Care plan are also eligible for an existing £1000 payment.
These incentives were announced as part of the policy paper "A Plan for Jobs 2020" with a £1.6bn budget devoted to boosting worksearch skills and apprenticeships. The policy is focused towards job creation and supporting the economy following the impact of COVID-19. As the aim is for job creation unfortunately existing employees starting a new apprenticeship will not be eligible for the new additional incentive payments.
The incentive payments will be paid in two (50%) instalments; 90 days after the apprentice starts and 365 days after the apprentice starts. There are no restrictions on how the money is spent, it can be used on anything required to support the business.
Now is the ideal time to look at your business and assess what skills will be needed for your future plans. The new incentive payments provide an excellent opportunity to invest in a skilled workforce, ready for the future.
Perhaps developing Continuous Improvement Techniques in your workforce is critical going forward in a post-COVID world? Or using Digital Marketing to deliver your message to prospective customers? Maybe Lean Manufacturing will be the key to cutting costs?
If you would like help finding the right training or apprenticeships as part of a skills gap analysis to support your future growth then please get in touch with the team at Axia.