Employer Incentives

In response to the challenges faced by employers during the Covid-19 pandemic, from 1st August 2020, employers will be eligible to receive an incentive payment for hiring a new apprentice for an apprenticeship start, if, at the start of the apprenticeship, the apprentice is a new employee.

This scheme will be implemented in 2 phases – with the second phase starting on1st April 2021

Phase 1 - 1 August 2020 and 31 March 2021

To qualify the apprentice/s must:

1. Have a contract of employment start date between 1 August 2020 and 31 March 2021 (inclusive);

2. Not have been employed by you within the six months prior to the employment contract start date; and

3. Have an apprenticeship agreement containing a start date between 1 August 2020 and 30 September 2021 inclusive.

Age band of Apprentices    Incentive Payment

16-24                                     £2000*

25+                                        £1500

*For 16-18 years old apprentices, employers already receive £1000 (in an already established system) for new starts, in addition to the £2000 (total £3,000). The £1,000 is claimed by HWGTA on employer’s behalf and payments are forwarded, once received from the ESFA (Education and Skills Funding Agency)

 

Phase 2 - 1 April 2021 and 30 September 2021

To qualify the apprentice/s must:

1. Have a contract of employment start date between 1 April 2021 and 30 September 2021 (inclusive);

2. Not have been employed by you within the six months prior to the employment contract start date; and

3. Have an apprenticeship agreement containing a start date between 1 April 2021 and 30 September 2021 inclusive.

Age band of Apprentices    Incentive Payment

All Ages                                 £3000*

*For 16-18 years old apprentices, employers already receive £1000 (in an already established system) for new starts, in addition to the £3000 (total £4,000). The £1,000 is claimed by HWGTA on employer’s behalf and payments are forwarded, once received from the ESFA (Education and Skills Funding Agency)

In order to claim this additional incentive payment for hiring a new apprentice, you must use the apprenticeship service to access funding for the apprentice’s training and assessment and claim the additional payment, which will be paid to you directly.

Claim Information:

  • The payment will be made directly to employers in two equal instalments, where the apprentice is still in learning at day 90 and day 365.
  • There will be no limit on the number of incentive payments that an employer can claim for apprentices eligible to receive funding, provided each apprentice meets the criteria, including being a new employee.

If you have any queries about this please contact your normal HWGTA representative, who will be able to help you access this financial support.

Revision B 03/03/21