Updated guidance on apprenticeship funding in England

21 July 2020

The Department for Education has released updated information relating to apprenticeship funding in England. The updates include discussion of the recently announced plans by the government to provide employers with incentive payments for hiring new apprentices between August 2020 and January 2021.

The guidance confirms that the apprentice must be a new employee to the business, be supplied with a contract of employment start date between 1 August 2020 and 31 January 2021, having not been previously employed by the employer within the six months up to the contract start date.

Claims can be made by employers for these new apprentices from 1 September 2020, and claims will be submitted via the apprenticeship service.

There are two different payment amounts, dependent on the age of the new apprentice. For any apprentices aged between 16 and 24, the payment will be for £2,000, and for those aged 25 and over, it will be £1,500. These payments will be made in two separate instalments, of equal figures, if an apprentice is still in learning at day 90 and also day 365.

There is no limit to the number of incentive payments that one employer can receive, as long as the apprentices meet the criteria – the fact that the apprentice is a new employee is of crucial note.

The document also advises about a range of other key points relating to apprenticeship funding in England, including:

  • Funding policy from 1 August 2020
  • Information for employers who pay the apprenticeship levy
  • Information for employers who do not pay the apprenticeship levy
  • Timing of payments by government to providers
  • Funding apprentices who work in England
 

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