If you’re looking to take on a new apprentice, there are a range of new financial incentives, but there is some confusion on how these work, but thanks to help with our training provider, Richard Huish College, here is a summary below;

  1. 95% funding of training course costs for apprentices, but at least 20% of the apprentice’s time during their usual working hours must be training for the duration of the scheme.
  2. For apprentices over 25 cash incentive of £1,500 for employers
  3. For apprentices under 25 cash incentive of £2,000 for employers

All of the above is in addition to the original scheme for apprentices aged 16 – 18 being a further cash incentive of £1,000. So, for example if you take on an apprentice aged 18 then you receive £3,000 initial incentive and assuming the training criteria met and 95% of funding for their courses.

The above incentives are paid in 2 equal instalments, one 3 months after the apprentice starts, the second 12 months afterwards assuming you still have the apprentice of course.

This all sounds good if you’re looking to take someone on, but it is vital things are done in the right order. Before you take on an apprentice you need to create an online account with the Digital Apprenticeship Service.

There’s a bit of guidance here on You Tube.

You will also need to engage with a training provider, who sometimes also have a recruitment service to help you find the right apprentice. It is vital you look to do this before taking on an apprentice to qualify for the incentives. If someone starts with you without officially being an apprentice, then you will not qualify.

Your training provider should be able to send you a link to the relevant site to create your account and help you through the process. Once set up you can apply for the funding up to 3 months ahead of needing it, so it is “earmarked” for you. Once your apprentice starts their scheme the training provider applies for the course funding, but you must remember to apply for the incentive payments yourself via your Digital Apprenticeship Account.

As I understand it, usual employment rights and contractual obligations apply, so if for whatever reason the apprentice doesn’t work out, then there is not further commitment, i.e. you simply stop the scheme.  

As ever, I have done my best to share information with you that I find useful as a small employer in order that you may too take advantage of the current schemes, however we are not experts in this area, so please do obtain information from your preferred training provider on accessing the scheme. Of course, we will do our best to help.

Simon Jinks FCCA
Director, Ivybridge Accountants