The Government has been trying to encourage more businesses to take on apprentices throughout the pandemic – opening several new schemes that incentivise companies to hire younger workers at risk of long-term unemployment.
As part of a £500 million campaign, announced earlier this month, these schemes will now be extended into the new year to help businesses train a new generation of skilled workers.
This couldn’t come at a more important time for employers, many of whom are struggling to fill roles across important areas. Under the jobs initiative, employers will benefit from the following changes.
The Kickstart Scheme
Government support for the Kickstart Scheme, which helps employers offer work placements to 16–24-year-olds on Universal Credit will be extended to March 2022 with applications for employers remaining open until 17 December 2021.
Funding from the scheme covers:
- 100 per cent of a worker’s National Minimum or Living Wage (depending on the age of the applicant) for 25 hours per week for a total of six months
- The associated employer National Insurance contributions
- An employer’s minimum automatic enrolment contributions.
The job placement you create must not replace existing or planned vacancies or cause existing employees, apprentices or contractors to lose work or reduce their working hours.
Apprenticeship incentive payments
Meanwhile, the Chancellor confirmed that the Government will continue to offer £3,000 incentive payments to employers that take on apprentices until 31 January 2022.
This incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice aged 16 to 18 years old or aged 19 to 24 with an education, health and care plan or who has been in the care of their local authority.
To receive the full payment, the apprenticeship must last for at least one year.
Want to learn more about apprenticeships?
If you are interested to learn more about how apprenticeships can help your businesses to grow and how these initiatives affect your payroll, please contact us.
