New bonus for employers hiring an apprentice

Last week (July 8th, 2020) the Chancellor Rishi Sunak announced a “brand new bonus” for employers to hire apprentices.

The scheme that will run over the next six months, starting from August, and running until to January, is for any company that hires an apprentice.

If an organisation hires a new apprentice aged between 16 and 24 they will receive a £2,000 bonus from the government. For those companies that hire new apprentices aged 25 and over the bonus will be £1,500.

This bonus scheme is a great opportunity for employers to support young people getting into work and benefit from hiring new talent. It means that employers could receive up to £3,000 for hiring 16 to 18 year-old apprentices from August to January.

Key points for Employers

  • Payments for employers who hire new apprentices
  • Payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over
  • Starts from 1st August 2020 to 31st January 2021
  • Payments will be in addition to the existing £1,000 payment the government already provides for new 16 to 18 year-old apprentices
  • Payments will be in addition to the existing £1,000 payment the government already provides for those aged under 25 with an Education, Health and Care Plan – where that applies
  • Scheme available to levy and non-levy organisations

Update: 15/07/2020

Following on from the recent Government announcement on the apprentice bonus scheme, yesterday the Education and Skills Funding Agency published details of the eligibility rules for the new apprenticeship employer incentives.

Key points regarding payments: 

  • The employer must not have employed the apprentice within the six months prior to the apprenticeship contract start date.
  • There is no limit on the number of incentive payments, and payment will be made directly to employers in two equal instalments, where the apprentice is still in learning at day 90 and day 365.
  • The employer will need to claim the incentive payment via an online apprenticeship system from 1 September 2020.
  • The current £1,000 payment to employers for hiring a 16 to 18-year-old, remains in place.

To learn more about how to hire an apprentice and receive this bonus speak to our team.

Supporting Jobs After Covid-19

The announcement is part of the government’s package of measures to support jobs across the UK. It is the second phase of a three-phase plan to secure the UK’s economic recovery from coronavirus, coming after the furlough scheme and to be followed by a capital spending programme.

Announcing the incentives during the summer statement, Sunak stated: “We know apprenticeships work. Ninety-one per cent stay in work or go on to further training.”

“For the next six months, we are going to pay employers to create new apprenticeships.”

The Treasury has since published a “plan for jobs” document, which states these payments will be in addition to the existing £1,000 incentive the government already provides for new 16 to 18 year-old apprentices, and those aged under 25 with an education, health and care plan where that applies.

We are still awaiting the detail around how payments will be made, for example, the current £1,000 grant for a hiring a new 16 to 18 year-old apprentice, is paid in two instalments after 3 and 12 months, and there will obviously be conditions around receipt of the payment.


To learn more about how to hire an apprentice and receive this bonus speak to our team.