Apprenticeships are continuing to grow in popularity as businesses realise the advantages of having a qualified and skilled workforce. And so the number of cash incentives available to employers has also risen.
Businesses can claim a £1,000 cash payment from the government for any employed apprentice aged 16-18 or 19-24 with an Education Health and Care plan or care leaver.
Payments for this £1000 bonus will be claimed on behalf of the employer by their training provider in two instalments six months apart during the first 12 months of the employee being on an apprenticeship.
If you hire an apprentice under the age of 25, you won’t need to pay the employer Class 1 National Insurance contributions upper earnings limit (currently £50,000 a year).
This is a 13.8% cost saving on everything the apprentice earns over £8,788 a year. For more information on National Insurance breaks, Connect2Care has created a short guide showing how these savings work.
Most local governments and a handful of campaign groups have set up their own cash incentive schemes to encourage employers to hire apprentices and boost local talent.
Connect2Care can identify the local grants available to you and help you through the application process to access financial support. Get in touch with our friendly team today.