New Government Cash Incentives for Apprenticeship Employers
Employers have until the end of March 2021 to access the significant additional incentive payments available for engaging in apprenticeships.
If you recruit a new apprentice aged under 25, you can receive an additional £2000 incentive payment.
If you recruit a new apprentice aged 25 or over, you can receive a £1500 incentive payment.
These new payments are in addition to the existing £1000 incentive payment for taking a 16-18 year old apprentice (or a care-leaver or 16-24 year old with an Education and Health Care Plan, EHCP), so you can now receive £3000 for a 16-18 year old apprentice!
To access these incentives you will need to set up an account on the apprenticeship service and then set SGS permissions to manage your funding.
The Full Range of Government Support for Apprenticeships
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A £3000 new incentive for recruiting any age apprentice between 1st April 2021 and 30th September 2021, claimed by the employer via the Apprenticeship service
In addition, a £1000 incentive for the following (also payable for existing employees) – payable via SGS College in equal instalments at 90 days and 12 months for;
A 16-18 year old apprentice.
A 19-24 year old with an Education and Health Care Plan EHCP.
A 19-24 year old who has previously been in local authority care.
Employers make no National Insurance payments for apprentices under age 25
Example saving. An employer has a staff member who is under 25 and paid £16000 per year. The employer will be paying 13.8% NI on earnings above the first £8,424, so 13.8% x £7576 = £1045. If the staff member starts an apprenticeship, the employer will save £1045 per year, until the staff member reaches 25.
Government Contribution to Training Costs
This is dependent on the size of employer and the age of the apprentice.
For SME employers, with under 50 employees, apprenticeship training costs for are 100% government funded for 16 -18s, 19 - 24s EHCP and 19 – 24 care-leavers.
For SME employers, for all other age groups, training costs are 95% government funded.
For levy paying employers, training costs are 100% levy-funded, for all ages of apprenticeship, unless the full levy is used up. Training costs are then 95% government funded.
The government top-up levy funds with an additional 10%
This is paid monthly into the apprenticeship service account.
Care Leaver Bursary
A £1000 one-off payment to apprentices who have previously been in local authority care.
For any further information, or for help with the incentives, funding and apprenticeship process, please contact our Business Development team at [email protected]
Non-levy Employer Guide
A Guide to setting up an Apprenticeship Service Account, Reserve Funding and Access Incentives
Employers have to use the Apprenticeship Service to be eligible for the new, additional incentive payments. Fortunately the process is straightforward.
Employers will claim these incentives for themselves, via the apprenticeship service. If you need help at any stage contact SGS at 01179092285 or [email protected]
The easiest and quickest processes is to set up an account, then link to SGS as a training provider and give SGS permission to reserve funds on your behalf.
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Setting up the apprenticeship service account
Employer will need:
An email address.
Your PAYE scheme reference (usually in the format 123/A45678) and accounts office reference (in the format 123PA12345678).
Both these can be found on communications from HMRC regarding your PAYE scheme.
and will need to know:
The name of the apprenticeship standard.
The start month.
Who in your organisation you will authorise to manage the account.
It is easier and preferable to set SGS permission to reserve funds and add apprentices, rather than do it yourself. We can then ensure that all the data is correct.
To do this, add SGS in the Add Training Provide Tab. You will need our UKPRN, which is 10036143.
Then SGS will show in Your Training Provider tab where they can set permissions.
Should you choose to reserve funds, rather than give SGS permission, you will need to select the Apprenticeship Standard and the Start month. We would encourage all to select the maximum of 3 months ahead.
We will not be able to see if an employer has reserved funds correctly until you link to SGS as a training provider and set permission for us to manage funds and apprentices.
This is the stage of committing an apprentice against reserved funding. SGS can do this for you, once you have set permission for SGS.
Claiming the Incentive Payments
Only the employer can do this. The above steps must have been completed correctly and the apprentice reached the eligibility window.
Smart Assessor is an electronic collection of a learner’s skills and knowledge, which is assessed by their tutor against a training standard or qualification and replaces paper portfolios.
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