March 1, 2022
Business Incentive Payment!
Did you know your business can receive an extra payment for providing work experience to young adults and learners?
Your business can receive an incentive payment of up to £4000 for taking on an apprentice!
The payment is different to funding, so you can spend it on anything to support your organisation’s costs and you DON’T have to pay it back.
The £1000 payment will be paid to your training provider, and you will receive it from them for taking on an apprentice who is either:
- Aged 16 to 18 years old.
- Under 25 and has an education, health and care plan or has been in the care their local authority.
You can apply for an incentive payment of £3000 for new apprentices who join your organisation. To be eligible, the apprentices must both:
- Have started their employment at your organisation between 1st October 2021 and 31st January 2022.
- Start their apprenticeship between 1st October 2021 and 31st March 2022.
Find out more and how to apply for an incentive payment here!
The amount you get depends on whether you pay the apprenticeship levy. You pay the levy if you’re an employer with a pay bill over £3 million each year.
If you do not pay the levy (Non-Levy Company):
The government will pay 95% up to the funding band maximum. This will be paid directly to the training provider, meaning less hassle for you!
You pay 5% towards the cost of training and assessing your apprentice. You could be eligible for extra funding depending on both you and your apprentice’s circumstances.
If you pay levy (Levy Company):
You’ll receive funds to spend on training and assessing your apprentices depending on –
- The levy you declare to HMRC through the PAYE process
- Multiplied by the proportion of your pay bill paid to your workforce who live in England
- Plus a ‘10% government top-up’ on this amount
Benefits to Employers
- You can adapt their training according to the needs of your business.
- They’re motivated to learn new skills.
- You can expand and upskill your workforce.
- Help improve productivity.
- Improve the quality of your product or service.
Your business can receive up to £10,000 per year!
Employers who make new work placement opportunities available may be eligible for an incentive payment of £1000 per learner. You can claim this incentive for up to 10 learners per region. The best part – YOU decide how to use the money!
Traineeships are funded by the government. Traineeships are free to the employers, but they may choose to support trainees with expenses such as transport and meals.
Benefits to Employers
Offering a work experience placement gives employers the chance to:
- Get to know and work with a young person to see if they’re right for an apprentice or job in their business.
- Design a programme that suits the needs of the trainee and their business.
- Develop current employees’ experience in training and mentoring.
- Recruit new talent for their business.
- Claim an employer incentive of £1000 when a work experience placement of over 70 hours has been completed.
Take a look at the variety of apprenticeship courses we have available!
Want to find out more?
Have a chat with a member of our team today:
Connect with us
You’ll find our social channels bursting with content to keep you entertained and well informed!