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2021 Budget extends Apprenticeship deadline and boosts incentive

Apprentice talking to a manager

As part of an economic support package released in summer 2020, the Government introduced a financial incentive for employers to take on new employees as Apprentices. It has now been extended.

This incentive was due to end in April 2021 but, following the Chancellor’s announcement, it has been extended until September 2021. This will now cover the vital summer recruitment period.

And to make things even more attractive, the amount payable has been increased to £3,000 per Apprentice, regardless of age (it was £2,000 for younger apprentices but just £1,500 for anyone employed over 25).

This means that any employer taking on an Apprentice can benefit from:

  • A £3,000 cash payment per Apprentice hired (new employees only)
  • A 95% subsidy of the training costs (if not paying via the Apprenticeship levy)
  • National Insurance breaks if the Apprentice is aged under 25

All in all, it’s a very supportive package.

Flexi-apprenticeships

Another headline grabbing measure is an extension of the Apprenticeship Training Association (ATA) model, which is a bit like a temp agency for apprentices.

ATAs employ Apprentices and then ‘hire’ them out to other employers to complete elements of their Apprenticeship. That way Apprentices get lots of experience, plus smaller employers who perhaps couldn't afford to provide a whole apprenticeship can now participate by offering a limited amount of employment.

Unfortunately, however, the 10 Apprentice maximum for non Levy paying employers has been retained. But apart from that there is now a very good reason to see what an Apprentice can do for your business!

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