Knowledge Centre

For a number of years, the Government has been incentivising employers to take on young apprentices.

Apprenticeships enable young people with little to no experience to get on the career ladder and learn their craft whilst they earn a wage. Employers benefit not only through the below financial incentives, but also through the talented and loyal worker an apprenticeship creates.

Training younger apprentices and support for care leavers and those who have an Education, Health and Care Plan.

All employers, whether levy-paying or not, are entitled to a £1,000 support payment when they employ an apprentice who is aged 16–18, or 19–24 and either has an Education, Health and Care (EHC) plan or is a care leaver.

This payment is claimed by the training provider on the employer’s behalf and is paid in two instalments:

£500 after 90 days on programme

£500 after 365 days

(If the apprenticeship ends before 12 months, only the first instalment is paid.)

National Insurance Breaks

Employers do not pay Class 1 employer National Insurance Contributions (NICs) for apprentices under the age of 25 who earn less than £967 per week (£50,270 per year) and are on an approved apprenticeship standard. For example, this relief equates to savings of around £2,250 a year on a £20,000 salary, £3,000 on £25,000, and £3,750 on £30,000.