• Nigel Henshaw

Apprentice - Could Your Business Benefit from Employing One?

Updated: Oct 8


Apprenticeship Scheme


As part of the Governments 'Plan for Jobs 2020' there is extra funding available for Businesses to provide Apprenticeships.

Apprenticeships are an excellent way for employees to gain training and skills whilst earning a wage.

Due to the economic impact of the coronavirus (COVID-19) outbreak the government has introduced incentive payments for hiring a new apprentice to help organisations offer new apprenticeships.


How do the Incentive Payments for Hiring a New Apprentice Work?


Incentive payments for hiring a new apprentice are available to any employer who takes on an apprentice as a new employee to their business with a contract of employment start date between 1 August 2020 and 31 January 2021.


For every apprentice that is a new employee to your business, you can claim

£2,000 if they are aged 16-24 and

£1,500 if they are 25 or over.


You can also claim the incentive by hiring an apprentice who has been made redundant.

The incentive will be paid in 2 instalments. As long as the apprentice remains employed by your organisation and in training after 90 days, you will be eligible to receive the first instalment.

If the apprentice remains employed by you and in training on their apprenticeship, you will be eligible to receive the second instalment after 365 days.

The incentive payment for hiring a new apprentice is designed to support employers to find the skills they need to help recover from the economic impact of COVID-19 whilst creating new jobs.

Employers will also continue to receive an additional payment of £1,000 if the apprentice starts the apprenticeship aged:

  • 16 to 18

  • 19 to 24 years old and has an Education, Health and Care (EHC) plan provided by their local authority or has been in the care of their local authority

This payment is passed on by the training provider to the employer.


Would the Apprenticeship Scheme Benefit my Business?


If you are looking to employ a Trainee the Apprenticeship Scheme can allow you to do that at a lower financial cost, at the same time you will gain a qualified employee who will be fully trained with skills relevant to your business needs.

How Much Do I Pay an Apprentice?


You must pay Apprentices at least the National Minimum Wage

This is a different rate to the standard National Minimum Wage


Aged 16 to 18

The current National Minimum Wage rate for an apprentice is £4.15 per hour.

Aged 19 or over and in their first year

The current National Minimum Wage rate for an apprentice is £4.15 per hour.

Aged 19 or over and have completed their first year

Apprentices will be entitled to the standard National Minimum Wage or National Living Wage rate for their age.



How do I Apply for Payment Under the Apprenticeship Scheme?


You can apply for the payment from 1 September 2020, after you add new apprentices to your apprenticeship service account. The first payments will be made from January 2021 and will be paid directly into employer’s bank accounts.


How do I Find an Apprentice & What are My Responsibilities?


For all information and help needed please go to:

https://www.gov.uk/guidance/how-to-take-on-an-apprentice



For any help or advice specific to your business please contact us on

TEL: 01704365220 or EMAIL nigel@simplyccountsonline.co.uk