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Further Financial Support for Employers of Apprentices

For a number of years, the Government has been incentivising employers to take on young apprentices.

Apprenticeships enable young people with little to no experience to get on the career ladder and learn their craft whilst they earn a wage. Employers benefit not only through the below financial incentives, but also through the talented and loyal worker an apprenticeship creates.

Training younger apprentices and support for care leavers and those who have an Education, Health and Care Plan.

No matter the size of your business, if you’re a levy or non-levy payer – businesses are entitled to a £1,000 cash incentive payment for any employed apprentice aged 16-18 or aged 19-24 with an Education and Health Care plan or was once a child in care.

Payments for the £1,000 bonus will be claimed on behalf of the employer by their training provider in two instalments six months apart during the first 12 months of the employee being on an apprenticeship.

National Insurance Breaks

From April 2021 employers of apprentices under the age of 25 will no longer be required to pay secondary Class 1 (employer) National Insurance contributions (NIC) on earnings up to the Upper Earnings Limit (currently £50,270), for those employees.

This is a 13.8% saving on everything the apprentice earns over £9,100 a year for the employers of apprentices.

For more information on this initiative, EDN has provided an example of how the employer savings work.