The easing of restrictions and progress made with vaccinations will hopefully give businesses more confidence when planning for the future. We therefore thought it would be a good time to provide information on government initiatives that are intended to support employers to create employment, apprenticeship and training opportunities.

Incentive payments for hiring a new apprentice

Employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire. This is in addition to the existing £1,000 payment the government provides for all new 16 to 18 year-old apprentices and those aged under 25 with an Education, Health and Care Plan, where that applies.

The payment can be spent on anything to support the employer’s costs and does not have to be paid back.

Further details can be found at the following link:

Please note before employing you should ask us to check the employment contract that you intend to offer. This is to ensure the apprentice is engaged under a contract of employment and specifically not a contract of apprenticeship (which would make it more difficult for an employer to end the apprentice’s employment).

Kickstart Scheme

This scheme provides funding to employers to create job placements for 16 to 24 year olds on Universal Credit. Key aspects of the scheme include:

  • All employers are eligible for the scheme, regardless of their size.
  • Funding is only available for new jobs which do not replace existing or future vacancies or cause existing employees or contractors to lose or reduce their employment.
  • The roles for which an employer applies for funding must be for a minimum of 25 hours per week for six months and should not require participants to undergo extensive training before they begin. Participants must be paid the National Minimum Wage for their age group.
  • Each application should set out how the employer will help participants to develop their skills and experience, including support to look for long-term work, support with their CV and interview preparations, and support with basic skills such as attendance, timekeeping and teamwork.
  • Funding is available for 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions (employers may top up the government’s contribution). There is also £1,500 per job placement available for setup costs, support and training.

Further details can be found at the following link:

Traineeship employer incentive scheme.

Employers who create new traineeship opportunities can apply for a cash payment of £1,000 for each trainee they take on up to a maximum of 10 trainees. The scheme is available until 31 July 2021 and employers can claim the cash incentive for all work placements that have been completed since 1 September 2020.

Further details can be found at the following links.

For more information on this or for any other employment law related matters, contact James Edmonds, a Solicitor in the Employment department by telephone on 01626 202329 or by email

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.