£2,000 Apprenticeship Payment to Support Small Businesses in England
New government support will help smaller businesses recruit young apprentices and develop their future workforce
Small and medium-sized businesses across England can receive £2,000 for every eligible young person they take on as an apprentice, under new government support designed to encourage more employers to recruit young people.
The Apprenticeship Hiring Payment is available to non-levy paying employers and is intended to help cover costs associated with employing a young apprentice. The payment can be used towards any employment-related costs, including equipment, travel expenses and uniforms.
Eligible employers do not need to apply for the payment. Apprenticeship training providers will identify eligible apprentices when they start their training and pass the funding on to the employer.
To qualify, the apprentice must be aged between 16 and 24 when they start their apprenticeship training. Young people aged 15 may also qualify where their 16th birthday falls between the last Friday in June and 31 August. The apprentice must also have started their job with the employer no more than 90 days before beginning their apprenticeship training.
The £2,000 payment will be made in two instalments. Employers will receive £1,000 after the apprentice has completed 90 days of their apprenticeship and a further £1,000 after one year. For foundation apprenticeships, the second payment will be made after 242 days.
The apprentice must remain employed by the business when each payment becomes due. Training providers are required to pass the payment to eligible employers within 30 working days of receiving it from the government.
The support forms part of wider government plans to increase the number of opportunities available to young people, including a target of delivering 50,000 additional youth apprenticeships. It is backed by additional investment in the Youth Guarantee and Growth and Skills Levy, which together are intended to support almost one million opportunities.
The government has also announced an expansion of its Apprenticeship Brokerage pilot across all existing Mayors within a Strategic Authority in England. Supported by £100 million of additional funding over two years, the expansion is intended to help more employers and young people access apprenticeship opportunities in their local areas.
GrantFinder features a broad range of funding opportunities for companies recruiting apprentices, developing their workforce and investing in business growth.
