New cash incentive for businesses to take on new apprentices
Small, medium and large businesses can now claim for extra funding to take on new apprentices, with the UK government’s apprenticeship incentive scheme open for business this week.
A cash incentive of £3,000 can be claimed for every new apprentice employed from 1 April until 30 September. The incentive is paid in addition to the funding available to employers for training and assessing apprentices.
The Chancellor confirmed the cash boost in the March budget, to enhance skills and training for businesses throughout the UK.
It seeks to help more employers invest in the skilled workforce needed for the future, as part of the government’s Plan for Jobs.
The scheme builds on current initiatives already underway, to protect, support and create more jobs, while better aligning the skills and education system with the employer market.
Chancellor Rishi Sunak said it’s increasing opportunities, as the country rebuilds from the pandemic.
“Young people have been hit especially hard by the crisis – which is why our Plan for Jobs launched last year is focused on helping them get the skills they need to get the jobs they want,” said the Chancellor.
“By boosting the cash incentives for our apprenticeship scheme we’re improving opportunities for young people to stay in and find work – this could not be more important in our economy’s recovery.”
Minister for Apprenticeships and Skills, Gillian Keegan said apprenticeships are a fantastic way for employers to grow their businesses and will continue to play a key role in the country’s economic recovery.
“This cash boost will help even more employers to invest in their future workforce, creating more high-quality apprenticeship opportunities so businesses have the skilled talent pipeline they need to thrive, not just today but also in the future,” said Ms Keegan.
The original apprentice incentive scheme was first launched in July 2020 by the Chancellor, and since then, thousands of businesses across the country have already benefited.
How the cash is spent is completely up to the employer – be it for travel costs, uniforms or something else entirely.
Helena Baxter, apprenticeship lead at Walsall Council, said apprenticeship are good business sense, and good for the future of young people. It is a win-win.
“Apprentices can be moulded and shaped in their area of expertise, to deliver the exact skills your business needs,” said Ms Baxter.
“Apprentices are the future decision makers, managers and leaders of Walsall Council and continuing to bring apprentices into the business, even in such difficult times, is important to protect our future, whilst ensuring we continue to deliver the vital services our communities depend upon.”
“I would urge all employers to continue to recruit, and to benefit from government incentives to ease financial burden, whilst offering exciting and rewarding careers opportunities to apprentices.”