Employer Apprenticeship Funding Changes – November 2021

  1. Changes to reservations for apprenticeship funding from 1st November 2021
  2. Extension of incentive payments for hiring a new apprentice

Changes to reservation for apprenticeship funding from 1st November 2021

From 1st November 2021, the reservation period for employers who do not pay the Apprenticeship Levy will be reduced from six months to three months. While it had previously been extended six months, it was found that very few employers needed to reserve funds more than three months ahead.

Employers can still plan ahead when recruiting apprentices. Employers can reserve funding three months before an apprentice’s expected start date and have a further two months after the planned reservation month to start their apprentice. As is the case now, if no commitment is made on the apprenticeship service by then, the reservation will expire.

Any reservations made before 1st November 2021 will not be affected. Further information on how to reserve funding is available on GOV.UK.

Extension to incentive payments for hiring a new apprentice

On 4th October the Chancellor of the Exchequer, the Rt Hon Rishi Sunak MP, announced a £500m expansion of government action, to tackle unemployment and support job seekers, following the end of furlough. This included the extension of the popular incentive payment for hiring a new apprentice, until the end of January 2022. Employers will be able to apply for a payment of £3,000 for apprentices with an employment start date between 1st October 2021 and 31st January 2022. The apprentice must start their training before 31st March 2022. The application window for employers to claim the incentive for these apprentices will open on 11th January and will close on 15th May 2022. Find out more here.

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