Guidance

Incentive payments for hiring a new apprentice

Information about incentive payments for employers who hire a new apprentice between 1 August 2020 and 31 January 2021.

We have introduced payments to support employers who hire new apprentices between 1 August 2020 and 31 January 2021.

We will make this payment in addition to the £1,000 employers already receive for hiring an apprentice:

  • aged 16 to 18 years old
  • under 25 with an education, health and care plan or has been in the care of their local authority

What you’ll get

Employers who hire a new apprentice between 1 August 2020 and 31 January 2021 will receive a payment of:

  • £2,000 for apprentices aged 16 to 24
  • £1,500 for apprentices aged 25 and over

You’ll get the payment in 2 equal instalments. You’ll receive 50% after the apprentice completes 90 days of their apprenticeship and the remaining 50% after the apprentice completes 365 days. To receive the full payment, the apprenticeship must last for at least one year.

We’ll ask for your organisation’s bank details when you apply, so that we can pay you directly.

What you can use the payment for

The payment is different to apprenticeship levy funds so you can spend it on anything to support your organisation’s costs. For example, on uniforms, your apprentice’s travel or their salary. You do not have to pay it back.

You can only apply for this payment for new apprentices who started their contract of employment between 1 August 2020 and 31 January 2021.

How to apply

You can apply for an incentive payment after you have added new apprentices to your apprenticeship service account.

You can also apply for the payment if you recruit apprentices who have been made redundant, as long as they’re new to your organisation and they were hired between 1 August 2020 and 31 January 2021.

Create an account or sign in to your existing account to claim an incentive payment for hiring a new apprentice.

Find out more about how to register and use the apprenticeship service as an employer.

Get help

You can either:

Published 10 August 2020
Last updated 28 September 2020 + show all updates
  1. Updated information on incentive payments and how to claim them by setting up an apprenticeship service employer account.

  2. First published.