Financial incentives

Apprenticeships are continuing to grow in popularity as businesses realise the advantages of having a qualified and skilled workforce. And so the number of cash incentives available to employers has also risen.

Plan for Jobs

From 1 April 2021 through to 31 January 2022, the government is incentivising employers to hire new apprentices by offering cash rewards as part of Build Back Better.

Employers in England will receive a payout of £3,000 per new apprentice hire (compared with £1,500 per new apprentice hire, or £2,000 for those aged 24 and under, under the previous Plans for Jobs scheme).

This payment is in addition to the existing £1,000 payment the government provides for all new 16 to 18 year-old apprentices and those aged under 25 with an Education, Health and Care Plan, where that applies.

At Connect2Care, we’re always on hand to guide you through this process and help you recruit an apprentice.

Recruit an apprentice today!

16-18 cash bonus

Businesses can claim a £1,000 cash payment from the government for any employed apprentice aged 16-18 or 19-24 with an Education Health and Care plan or care leaver.

Payments for this £1000 bonus will be claimed on behalf of the employer by their training provider in two instalments six months apart during the first 12 months of the employee being on an apprenticeship.

National Insurance breaks

If you hire an apprentice under the age of 25, you won’t need to pay the employer Class 1 National Insurance contributions (NICs) on their earnings below the upper earnings limit (£50,000 a year).

This is a 13.8% cost saving on everything the apprentice earns over £8,788 a year. For more information on National Insurance breaks, Connect2Care has created a short guide showing how these savings work.

Local grants

Most local governments and a handful of campaign groups have set up their own cash incentive schemes to encourage employers to hire apprentices and boost local talent.

Connect2Care can identify the local grants available to you and help you through the application process to access financial support. Get in touch with our friendly team today.