The National Logistics Academy
Government grants available of up to £3,000 to recruit an apprentice.

Government grants available of up to £3,000 to recruit an apprentice.

28 July 2020

Payments for employers who hire new apprentices

The government set out ambitious plans to rebuild the economy beyond the coronavirus pandemic, with significant incentives available to employers; encouraging them to hire new apprentices and trainees.

Grants available 

To help businesses' recover from Covid-19, Rishi Sunak has announced that for the next six months, the Government will pay employers to hire apprentices, with a new payment of £2,000 per apprentice for those under the age of 25 and £1,500 for those aged 25 and over. This money is in addition to the existing £1,000 payment the Government already provides for new 16-18-year-old apprentices and those aged under 25 with an Education, Health and Care plan.

Who can claim?

The grants are available to both levy and non-levy paying employers, but claims can only be made for new apprentices who start between 1st August 2020 and 31st January 2021. New apprentices cannot be existing employees but can be existing apprentices who have been made redundant by another employer – allowing access to a wider talent pool. 

Using the grant

Employers can use the incentive funding to help meet any of the costs associated with supporting a new apprentice in their workplace: including facilities, uniforms, and apprentice travel. It can also contribute to meeting the costs of an apprentice’s wages. Individual employers can choose how to spend the money to support their apprentices depending on their individual circumstances.

Grant payments

The money will be paid in instalments, with 50% of the total paid at roughly 90 days from the apprentice’s start date, and the remaining 50% paid roughly 365 days from the apprentice’s start date, subject to the apprentice still being in employment (with the same employer) and undertaking their apprenticeship at these times.

Making a grant claim

You must have a registered account through the apprenticeship service which our team can provide further guidance on. Only employers with a registered apprenticeship service account will be eligible for grant payments, the registration process for the apprenticeship service has recently been streamlined to minimise the administrative burden for employers.

For free advice on the apprenticeship grants available to your business, complete the form at the bottom of the page and a member of our team will contact you.