Government announces additional funding to employers who take on an Apprentice
Are you an employer who has thought about taking on an apprentice? Now could be the perfect time as the Government has announced an extension on an additional funding incentive, encouraging businesses to support young people into work.
Following an announcement in the recent Budget, the Government will pay an employer who hires a new apprentice between 1 April 2021 and September 2021 an additional £3000. This £3000 incentive covers apprentices of all ages and will be made on top of the existing £1000 that employers currently receive for all new 16 to 18 year-old apprentices, as well as those under 25 with an Education, Health and Care Plan.
If you are a small business (50 employees or less) taking on an apprentice aged between 16-18 you will have no employer contributions to pay. For all employers taking on an apprentice aged 19 years and over, there will be an employer contribution, this equates to 5% of the total funding cost, the Government fund the remaining 95%.
For larger organisations or those employers with a wage bill in excess of £3 million per annum. The levy is 0.5% of your annual wage bill. Levy payments are collected monthly by the HMRC through the PAYE process. It is this levy which is used to fund apprenticeship training in your organisation.