New Incentives for hiring Aspiring Apprentices, and don’t forget to use your Levy


New Incentives for hiring Aspiring Apprentices, and don’t forget to use your Levy.

Additional incentives for hiring an apprentice were announced yesterday. Any employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire, regardless of the apprentice’s age.

This is on top of the £1,000 payment already 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.

Do you pay the Apprenticeship Levy? How do the Incentives work for large employers? And are you making the most of it?

If your payroll is over £3 million, you will be paying the Apprenticeship Levy at a rate of 0.5 of your total payroll. 

Example below:

Payroll of £3m your business will pay £15,000 to the Levy

Payroll of £6m your business will pay £30,000 to the Levy

You can use this Levy to train a new apprentice or key staff; the government will also top-up your training drawdown by 10% in any one year.  If you do not use these funds, the money goes back to the government.

Here are the best ways to use and not lose your Levy.

  1. Hire an apprentice; you get bright new talent and up to £4000 incentives, and you can use your Levy to train them. You can do this through an established Training Provider who will help you manage the recruitment and training processes.
  2. Upskill your staff; Simply find a course and a certified Training Provider who will advise you on the training available, the process to set up and drawdown your Digital Apprenticeship Account and they will manage the whole training process for you.
  3. You can share your levy pot with key suppliers. For example, you have an excellent supplier, they don’t have a Levy to train key staff, but you want a project management team dedicated to servicing and managing your account.  You can transfer your levy funds to them to train their key staff.

Aspire to Learn offers training and apprenticeship courses in Marketing, IT, Cyber Security, Business Admin, Operational & Project Management, Sales & Customer services, Health, Teaching & Social Care.   Established for 14 years,  with excellent Ofsted ratings, employer and apprentice reviews, we can help you develop the best talent for your business.

 

 

 

 


04 Mar 2021