New apprenticeship incentive payments announced for employers

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New apprenticeship incentive payments announced for employers

Following the chancellor’s update on Wednesday 8 July 2020, the government has announced significant support for apprenticeships as part of their ‘Plan for Jobs’.

The government is introducing incentive payments of £2,000 to employers for each new apprentice they hire aged 16-24, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1 August 2020 to 31 January 2021.

These payments are in addition to the existing £1,000 payment the government already provides for non-levy employers who hire new 16-18 year-old apprentices. That’s a total benefit of up to £3,000 per apprentice paid directly to businesses.

The new incentives have been launched by the government in order to generate hundreds of thousands of new jobs for young people as part of their wider plan to support the economy which sets out to:

• Support people in finding jobs
• Enable them to gain the skills they need to get jobs
• Provide targeted help for young people to get into work

Rishi Sunak told the House of Commons: “We know apprenticeships work. Ninety one per cent stay in work or go on to further training. For the next six months, we are going to pay employers to create new apprenticeships.”

Gloucestershire College is relying on local businesses to help support the county’s next generation of talent through apprenticeship opportunities.

“Whilst we very much understand there are currently a lot of businesses who are not in the position to recruit, we strongly urge those that are to step forward.

“We are proud to already be working with more than 800 businesses to deliver top-quality apprenticeship training in the region. As a college, we have brilliant links with industry to help young people kickstart their careers. However in many industries, for example construction and IT, there are often more young people looking for opportunities than there are employers with openings.

“We are relying on local businesses to help us support Gloucestershire’s young talent and provide them with apprenticeships within our county. We are here to guide businesses through the process of hiring apprentices and match them with high calibre candidates that are the right fit for their organisation.

“We hope the new incentive payments announced by the government will encourage many new employers to step forward to take on apprentices.” – Andy Bates, Vice Principal and CFO at Gloucestershire College

Gloucestershire College has a Business Hub team who are dedicated to providing expert, no-obligation advice to local employers about apprenticeships and funding opportunities.

Employers who are interested in taking on an apprentice are urged to get in touch with the Business Hub for bespoke advice tailored to their business.

Email: or call: 01452 563400

To explore Gloucestershire College’s broad portfolio of apprenticeship programmes, please visit: