£3,000 incentive for Apprentices hired between 1 Apr and 30 Sep

Supporting employers during the economic recovery
17 August 2020
Apprenticeship Incentive Payment

As announced in the Budget 2021, businesses can apply for a payment of £3,000 for each apprentice they take on as a new employee between 1 April and 30 September 2021.

Hiring an apprentice is a productive and effective way for any business to grow talent and develop a motivated, skilled and qualified workforce. As the economy recovers from the coronavirus (COVID-19) outbreak, apprenticeships will be more important than ever in helping businesses to recruit the right people, and develop the skills they need to respond to conditions and grow – both now and in the long-term. 



Employers with apprentices of any age who have an employment start date between 1 April 2021 and 30 September 2021 and who also have a practical period (apprenticeship training start date) between 1 April 2021 and 30 November 2021 may be eligible for an incentive payment.

The incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice:

  • aged 16 to 18 years old
  • aged 19 to 24 with an education, health and care plan or who has been in the care of their local authority


There will be no limit on the number of incentive payments that an employer can claim for apprentices eligible to receive funding but you cannot apply for an existing employee who has joined your organisation before 1 April 2021. 

You can decide how to spend the incentive payment to best support the needs of your business and the apprentice.


How to apply

Employers can apply for the incentive payment through the ‘Finances’ section in their apprenticeship service account. Please watch video showing how to claim the incentive payment which explains the incentive application process step by step.


Please note – As an Employer - you must have applied for the incentive payment by the end of 30 November 2021.

If this deadline is missed the Apprenticeship Service will not honour the employer incentive payments, even where the apprentice was previously eligible.

We cannot apply for this on your behalf – incentive payments can only be claimed by the employer in their Digital Apprenticeship Service account


Contact us for support

Our team are on hand to answer any further questions you have. For more information about apprenticeships and the incentive please contact us and we’ll be in touch.