Cash Bonus Scheme for hiring apprentices to increase
The cash bonus scheme for hiring apprentices aged 25 and over is set to double to £3,000 and will be extended by six months.
Financial incentives were first introduced by Rishi Sunak in August and currently offer firms £2,000 to take on apprentices aged 16 to 24, while those that employ new apprentices aged 25 and over are paid £1,500.
But take-up has been low. Latest Department for Education data shows that 25,420 employers have submitted claims for the bonus as of 1 February 2021. The Treasury had budgeted for up to 100,000 incentive payments for new apprentice hires.
The current scheme ends in March, but the chancellor has announced new plans in his budget to extend it until September 2021.
From April, the incentives will become more generous with a £3,000 payment per hire, regardless of the apprentice’s age.
This is on top of the £1,000 payment provided for new apprentices aged 16 to 18 and those under 25 with an Education, Health and Care Plan, meaning that some employers could receive £4,000 in total.