New Employer Incentives

You can claim for an incentive payment for new apprentices who join your organisation. The amount you get will depend on when the apprentice joined your organisation. The incentive payment is in addition to the £1,000 you already receive if you have hired an apprentice who is either:

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

Apprentices who joined your organisation before 1st April 2021

You can claim up to £2,000 as an incentive payment if your apprentice starts between 1st August 2020 and 31st March 2021. The amount you receive depends on the apprentices age. 

  • If your apprentice is 16-24 you will receive £2000
  • If your apprentice is 25 and over you will receive £1500

All grants for apprentices who started between 1st August 2020 and 31st March 2021 must be applied for by 31st May 2021.

Apprentices who join your organisation from 1st April 2021

You will receive £3,000 for new apprentices of any age who join your organisation from 1st April 2021 to 30th September 2021. 

You can apply for the incentive payments for these apprentices from 1st June 2021 to 30th November 2021. 

What can you use the payment for?

You can spend the payment on anything to support your organisation’s costs. For example, on uniforms, your apprentices travel or their salary. You do not have to pay this incentive back. 

Are you eligible?

To be eligible for the new incentive payments your apprentice must have joined your organisation between 1st August 2020 to 3oth September 2021. 

You cannot apply for an existing employee who joined your organisation before 1st August 2020, even if they started their apprenticeship after this date. 

How to apply

Once you have added your apprentice onto your apprenticeship service account you will be able to complete your application. 

If you don’t have an apprenticeship service account you will not be able to apply for the payment. 

When will you get paid?

Payments are paid in 2 equal instalments for each apprentice. You will receive your first payment after your apprentice completes 90 days of their apprenticeship. You will receive your second payment after your apprentice completes 365 days of their apprenticeship. 

After you have applied for the payment you can view your applications, estimated payment dates and check the status of each payment in your apprenticeship service account. 

Payments are paid directly from the ESFA and they make their payments by Bacs on the 14th working day if the month and it usually takes around 3 working days to process.