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The employer incentive to take on new apprentices will be doubled to £3,000 from April 2021

With this increase that comes into effect from April 2021 to September 2021, it’s never been more affordable for businesses to take on an apprentice.

    Apprenticeship incentive

    But what does this mean for your business in a post-pandemic landscape, and how can the team here at Nottingham Trent University (NTU) help you to stay competitive and develop, diversify and retain your workforce cost-effectively?

    We have a dedicated apprenticeships team that can provide valuable support such as helping you recruit an apprentice and access funding for training as well as wage incentives. In addition to that, we can also facilitate levy transfer and provide free employer mentoring. And as we have already done for many local businesses, we can also work with Small and Medium-sized Enterprises (SMEs) to identify a ‘donor’ levy paying company that could cover 100% of the training costs.

    David Drury, Degree Apprenticeships Manager at NTU explained: “Apprenticeships are an affordable and effective way of growing and retaining a motivated, skilled and qualified workforce, diversifying your team, and bringing in new ideas to the organisation that will aid succession planning.”

    How your business could benefit from the incentive scheme

    • Businesses that employ 16 to 18-year-old apprentices already receive a £1,000 incentive from the government for doing so. This usually goes to offsetting the apprentices’ wages. This also applies to those aged 19 to 24 and subject to an EHC plan or who have been in the care of their local authority.
    • From 1 April 2021 to September 2021 any business that hires an apprentice will receive £3,000 for doing so, in addition to the existing £1,000 for those aged 16 to 18, and the eligible 19 to 24-year-olds mentioned above.
    • SME’s also receive 95% of the training costs for any apprentice(s) that they employ. The additional 5% can also be covered if a ‘donor’ levy paying company can be identified.
    • SME’s employing fewer than 50 employees receive 100% of the training costs for apprentice(s) that they employ who are aged between 16 to 18 years old and those aged 19 to 24 and subject to an EHC plan or who have been in the care of their local authority.

    We know apprenticeships work – 86% of employers said apprenticeships developed skills relevant to their organisation and 78% reported improved productivity. On top of that, 90% of apprentices stay on in their place of work after completing an apprenticeship (apprenticeships.gov.uk).

    Liza Julian, RJA Consultants

    Speaking from experience

    Apprentice employer and Director at RJA Consultants Liza Julian told us: “We had our first two apprentices in 2019, and have since gone on to recruit six apprentices across all years at NTU. The reasons for that is because the calibre of apprentices coming through is exceptional and we also have a really good working relationship with NTU. They answer any queries we have and assist us with any paperwork we need to do to reserve funding for the apprenticeship programmes.”

    Please visit our website or get in touch with our Apprenticeships team by emailing apprenticeships@ntu.ac.uk or phoning 0115 848 2589, and find out how we can help your business today.

    Published on 9 March 2021
    • Category: Business