Employers can claim up to £4,000 for taking on an apprentice aged 16-18.
And, apprentices of any age can attract £3,000 of funding.
Business Development Director Gina Bubbins of The Bedford College Group says:
“We can guide companies through the process. It does require a commitment to allow the individual to spend 20% of their time in training. That doesn’t have to be a day release to college, it can be online learning or mentoring in the workplace.
“But the Government is putting more money up to incentivise employers to take on new apprentices of all ages.
From the 1st April the new Government Incentive of £3,000 can be used for those that start employment within the organisation from the 1st April 2021 to the 30th September 2021, this is for all employers and for any age group.
“In addition there is an employer grant, that is age-related, of £1,000 for employers that take on, or put existing staff through an apprenticeship, at the age of 16-18.
“So, if an employer signs up an apprentice aged 17 on from the 1st April they could claim £4000.
“If they took on a 25-year-old from the 1st April they could claim £3000
“If they had an existing staff member who was 18 and put them on an apprenticeship they could claim £1000. But if they had an existing staff member who was 25 and put them through an apprenticeship, they could claim nothing.”
Extra circumstances: If the employee has additional needs and has an educational, health care plan in place, there are extra funds available for them as apprentices, if aged under 25.
What about the Apprenticeship Levy system?
For larger companies who are Apprenticeship Levy payers, they can use their levy to put existing staff through apprenticeships to upskill them (so no cost coming from their training budget).
If non-levy payers they only have to contribute 5% and the Government will pay the 95% of the apprenticeship cost. For those with fewer than 50 employees, the Govt will fund 100% of course fees for 16-18- year-olds
The Bedford College Group is the largest provider of apprenticeship training in the South East Midlands region. It works with more than 1,500 businesses in Beds, Northants and MK, has welcomed the added funding for employers announced by the Chancellor in his budget on March 3rd.
Apprenticeship programmes are available in 60 different career options via The Bedford College Group which has campuses in Bedfordshire and Northamptonshire. Find out more here.
Apprenticeships which had been traditionally associated with 16, 17 and 18 year olds, has since been widened to include funding for adults – but with less money for the employer.
Apprenticeships begin at Level 2 (GCSE equivalent) and are available up to and including Higher Apprenticeships (at degree level).
“We will be liaising with existing and new employers to help them make the most of these new opportunities,” said Gina,
Businesses are overburdened with changing paperwork, rules and regulations in these challenging times, we are here to make things easier for them.
Govt Guidance on apprentices pre-April 1st 2021
For new apprentices who joined your organisation between 1 August 2020 and 31 March 2021 aged:
- 16 to 24, employers receive £2,000
- 25 and over, employers will receive £1,500
You must apply for these apprentices before 30 April 2021.
To talk about the funding options available for your business please email email@example.com or call 01234 291747.