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Employer incentive for new apprentice hires extended to January 2022

The Government has just announced that it is to continue to offer a £3k incentive for employers taking on new apprentices up to 31 January 2022 – an extension to the previous 30 September 2021 deadline. This applies to employees who started after 1 April 2021, with no limit on how many apprentices a particular employer can take on.

    Apprentices at work

    With the news of the extension, it really has never been more affordable for businesses to take on an apprentice.

    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. With experience of empowering 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.

    “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.”

    David Drury, Degree Apprenticeships Manager at NTU

    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 January 2022 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).

    Get in Touch

    For further information on this incentive and how NTU can help your business, please get in touch by emailing apprenticeships@ntu.ac.uk or phoning 0115 848 2589,

    Published on 8 October 2021
    • Category: Business