The Apprenticeship Scheme Update – All You Need To Know

An update to the Apprenticeship Hiring Scheme was announced by the Chancellor in the UK Budget on Wednesday 3rd March 2021. The original incentive scheme was previously extended up to March 31st 2021, however this was then further updated and extended up until 30th September 2021.

The Apprenticeship Incentive Scheme will see employers receive £3000 of government funding for every apprenticeship that is carried out after 1st April 2021. This is on top of the £1000 payment already provided for new apprentices aged 16 to 18 and those under 25 with an Education, Health and Care Plan, resulting in some employers potentially receiving £4000 in total.

The age restriction of 24 years old is now wiped out, meaning anyone above the age of 16 can undertake an apprenticeship. It’s worth noting that 16–24-year olds will also be exempt from National Insurance contributions, benefitting employers even more so. The £3000 funding will be paid directly to the employer once all the relevant proof is shown that an apprentice has been hired.

As well as an extension to the Apprenticeship Incentive Scheme, the Chancellor of the Exchequer, Rishi Sunak, also announced a scheme called Portable Apprenticeships, also known as Flexi-Job Apprenticeships. These are aimed at individuals mostly in the creative sector who benefit from working for multiple companies across many projects, with long-term training provided. This £7 million fund allows employers access to a pool of apprentice talent with the flexibility offering positives for both parties.

Furthermore, the Chancellor also announced the Help To Grow Management Programme, a 12-week initiative for students of business schools. The programme will help learn and develop skills in financial management, innovation and digital adoption with 30,000 places available over a 3 year time period. The government will cover 90% of the costs, with participants needing to be Senior Managers to participate, whilst contributing a £750 sum to the costs of the initiative.

What Is The Apprenticeship Incentive Scheme?

The Apprenticeship Incentive Scheme is for employers who hire a new apprentice between 1st August 2020 and 30th September 2021. The £3000 fund for each apprentice is funded by the government to the respective employer, encouraging them to hire apprentices by covering the bulk of the costs. Employers must pay the apprentices at least the minimum wage according to their age with the £3000 able to be spent on anything to support the organisation’s costs, including uniform, travel expenses etc.

In order to qualify for the scheme, your business will need to set up an apprenticeship service account before applying for an incentive payment once new apprentices are added to your apprenticeship service account. Businesses and firms will need to find a relevant apprenticeship training program for apprentices to undergo whilst working for the organisation, before advertising for the apprenticeship role through the find an apprenticeship service. Once you’ve selected your apprentice, an apprenticeship agreement and commitment statement will need to be completed.

Once verified and financial details are checked over, the £3000 lump sum will be paid in two equal instalments, with the first payment after an apprentice completes 90 days of their apprenticeship and the second after 365 days. The first payment could take as long as 3 months to be paid. A full breakdown document of the rules for employers in relation to the Apprenticeship scheme can be found here.

Who Will The Apprenticeship Incentive Scheme Affect?

The Apprenticeship Scheme is eligible for all businesses providing they are UK registered. The apprentice must work for you, or a connected company or charity as defined by

HMRC, and they must:

  • Have the right to work in England.
  • Be 16 years of age or over (no upper age limit).
  • Spend at least 50% of their working hours in England.
  • Work with experienced staff.
  • Learn job-specific skills.
  • Get time for training or study during their working week (at least 20% of their normal working hours).
  • Not be undertaking another apprenticeship at the same time.
  • Not in full-time education.

Businesses have until 30th September 2021 to complete all of the necessary processes to hire an apprentice in order to qualify for the £3000 of funding. 

Why Have The Government Extended The Apprenticeship Incentive Scheme?

The government chose to extend the Apprenticeship Incentive Scheme in a bid to boost jobs and the economy. It encourages businesses to hire and train workers in the hope they become valuable and qualified assets for future development. 

Zlatina Loudjeva, a National Government Services Director, stated, “With some sectors losing jobs rapidly due to the pandemic, these steps are vital in connecting the labour force directly with employer demand – helping address skills gaps at speed. These incentives will also support the transition to the new generation of green jobs that will demand new qualifications, professional standards, retraining of the current and future workforce. Evidence suggests that the impact of the current labour market disruption is being particularly acutely felt by parts of the UK that are targets for the Government’s levelling up agenda so this will especially help people seeking employment in those areas.”

As well as this, in the first two quarters of the 2020/21 academic year (August 2020 to January 2021), there were 161,900 apprenticeship starts. This was a drop of 18% from the same period in 2019/20, with around 36,700 fewer starts. This significant reduction in apprenticeship uptake is predicted to have a possible detrimental effect on many industries down the years, hence why the government have chosen to provide additional funding to get businesses and firms hiring apprentices again.

How Can I Apply For An Apprentice To Join My Business?

If your business is interested in hiring apprentices, all relevant information can be found via the dedicated Apprenticeship Incentive government portal.

 

We hope this has outlined to you exactly what the Apprenticeship Incentive Scheme is and whether it applies to your business. If you require any more information on apprenticeships, government COVID-19 loans, grants and schemes, or anything accounting related for that matter, please don’t hesitate to get in contact with us at Nordens where one of our trusted advisors would be happy talking you through your query.

 
Beyond Accountancy

At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.

Nordens Strategic

Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.

Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.

Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.

Accounting 2 You

Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.

Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.

With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.

Voted as EXCELLENT - 9.9 out of 10 based on 167 reviews

<
Chris Dyer

Director - Metro Bank

Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.

Read more reviews on Trust Pilot

Jamie Brown

Co-Founder - Chicmi Limited

Very good to work with - the team go above and beyond to make the accounts easy and efficient. They're all super friendly and a joy to work with.

Read more reviews on Trust Pilot

Simon Rose

Director - Rose Opticians

I have been using Nordens Chartered Accountants for 5 years and very happy with the service provided. All members of the team are very knowledgeable and have a wealth of experience which has proved very beneficial to my organisation

Read more reviews on Trust Pilot

Rebecca Bossick

Founder & Director - Physio LDN

Very easy to contact and put me in touch with the right person whenever I need to ask any questions. Extremely knowledgeable and can help me manage my various businesses whenever I need.

Read more reviews on Trust Pilot

James Aconley

Principal - Pauline Quirke Academy

Great accountants, always available to offer advice. The team have transformed my business.

Read more reviews on Trust Pilot

Christopher Wilce

Founder - Dataphone

Having worked with Nordens over the last 5 years, not only to look after my annual accounts but they have also provided outstanding professional advice. They have guided me through a Company share buyback with clear and objective advice. We have also been using Nordens strategic services for a couple of years, which has helped bring about significant improvements that exceeded my expectations. With experience of working with several local accountants over my 29 years in business, I’m very pleased with the service I have received from Nordens.

Read more reviews on Trust Pilot

Dave Hodges

Director - Linekers

Trusted our business with Nordens for over 10 years now and watched the company grow into the successful innovative business it has become today. Deservedly so. Every aspect of financial advice we need is always given promptly and with a smile. We have total confidence in all aspects of advice Nordens give. If you are looking for accountants, its a no brainer!

Read more reviews on Trust Pilot

Tony Charles

Founder - Foundation Sports Limited

A fantastic, modern, vibrant firm that care about the clients and their staff in abundance. It is rare to find an Accountancy firm with such vibrance and focus and relationships. It is no wonder they win award after award in their field.

Read more reviews on Trust Pilot

Peter Horlock

Managing Director - Prime Time Boilers

I have been with Nordens for many years now and they are a great accountants.

Read more reviews on Trust Pilot

Simon Cushing

Founder - Vivid Finishes

We have used Nordens for the last 5 years and have had a great service throughout. The guys are very passionate about what they do and have played a part in the growth of our company, highly recommended.

Read more reviews on Trust Pilot

Andrew Martin

Managing Director - AMD Interior Architecture

Great Service at Nordens from a friendly very approachable team Particularly Kirsty Willis and Joe Sword who have been helping us since we started the business in 2016.

Read more reviews on Trust Pilot

James Robinson

Director - Forma London

Nordens provide a first class service. We moved to Nordens last year and have been impressed with the level of service provided. Keep up the good work!

Read more reviews on Trust Pilot

>
Latest News

We've always got our ears to the ground when it comes to interesting, useful and topical information relating to business and accountancy.

How To Navigate An…
A volatile or unstable nation’s economy ultimately affects every person in that particular location. As the UK finds itself in hot water amidst supply chain issues, energy price increases and post-pandemic uncertainties, there ...
The Autumn 2021 Budget…
The Chancellor of the Exchequer, Rishi Sunak, will be carrying out his red briefcase and laying out his Autumn Budget plans on Wednesday 27th October 2021. The Autumn Budget doesn’t usually attract massive attention, however du...
Nordens TV

We love making videos that break down convoluted accountancy jargon into plain-talking, actionable and accessible facts.

Live Webinar – Time…
Watch our latest LIVE webinar titled ‘Time To Revive' that was held on Wednesday 3rd February 2021 at 4pm GMT hosted by our CEO Mitch Hahn. Last year was tough for all of us. Now is the time to see what 2021 brings and how we c...
Our Christmas Message To…
Merry Christmas to all!   Here we have Mitch Hahn, CEO of Nordens Chartered Accountants delivering our Christmas message to you. Click the video link or read the full transcript below.   As we enter the ho...
  Why I Founded Nordens
Accounting 2 You

In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier. The difficult part, for me, was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.

Mark Norden Signature

Mark Norden
Founder

We're Professionally Certified

Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). We worry about the bye-laws, regulations and ethical guidelines of the ACCA so you don’t have to! That makes us an ACCA-accredited employer as well as a Professional Passport-accredited one!