Exciting news for employers considering employing an apprentice in 2021 as it was announced by Chancellor of the Exchequer, Rishi Sunak that there would be an extension of the current apprenticeship incentive scheme to September 2021 alongside an increase in the value of the cash incentives.
The boost to the value of the incentives means that employers looking to hire apprentices can benefit from a payment between £3,000 and £4,000 per hire!
£3,000 per apprentice hire – employers in England will be able to claim £3,000 for each new apprentice they hire, of any age. From 1st April – 30th September 2021.
£4,000 per apprentice hire – for employers hiring new apprentices aged 16 to 18 and those under 25 with an Education, Health and Care Plan. This is due to the additional existing £1,000 payment already in place. From 1st April – 30th September 2021.
Further notable plans for employers outlined in the budget, include:
•£7 million fun available from July 2021 for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector/industry.
•Additional £126 million for 40,000 more traineeships in England, funding high-quality work placements and training for 16-24-year-olds in 2021/22 academic year.
•High street shops and hospitality businesses will be able to get ‘restart’ grants when they reopen later this year.
•An extension of the Coronavirus Job Support Scheme to September 2021 across the UK.
•£5 billion for new Restart Grants – a one-off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.
•Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.
•750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief.
Commenting on the announcement, Karl Rogers, Head of Business Development at Warrington & Vale Royal College, said:
“After what has been a challenging year for employers it is great to see the government recognising the importance of apprenticeships and the value they can add to a business by encouraging more employers to recruit apprentices into their organisation.
As a college we see many of our vocational students’ progress from their full-time courses at the college onto apprenticeships and hopefully this improved incentive scheme will provide even more opportunities for our work-ready students to take their first step into the world of work.
If you would like to discuss what is involved in hiring an apprentice and find out more about how these government incentives work, please contact our Apprenticeships Team to book an appointment.”
Boost employee performance and retention
Did you know you can use apprenticeships to upskill and retrain your existing workforce?
You can use apprenticeship training to:
•Fill key skill gaps in your business
•Boost employee motivation by investing in their development
For example, an experienced employee may be keen to get a formal qualification in their specialist area.
Or perhaps someone has the aptitude and drive to learn something new and progress into a different role?
There are apprenticeships from level 2 to level 7 (equivalent to a degree) so you will be able to find apprenticeships that suit the learning and development needs of your employees.
Apprenticeships are designed by employers so they reflect the relevant knowledge, skills and behaviours that your business needs.
If you would like to find out more about the financial incentives and benefits associated with employing an apprentice contact the Apprenticeships Team at Warrington & Vale Royal College on 01925 494271 or email@example.com.