Financial Incentive Payments For Businesses


FLM Training would like to update you on some financial incentive payments announced by the government for staff development and training. On July 8th, the Chancellor Rishi Sunak announced a number of measures to address the challenges posed by the Covid-19 outbreak. The measures are aimed at encouraging employers to take advantage of the skills development opportunities available from the Education and Skills Funding Agency (ESFA) and other government departments.

Due to the economic impact of the coronavirus (COVID-19) outbreak the government has introduced incentive payments for hiring a new apprentice to help organisations offer new apprenticeships.

Employers who hire a new apprentice between 1 August 2020 and 31 January 2021 can apply for:

£2,000 for each new apprentice aged 16 to 24

£1,500 for each new apprentice 25 and over

As an employer you will get the payment in 2 equal installments. You will be eligible for 50% of the payment 90 days after the apprentice’s start date, and the remaining 50% after the apprentice completes 365 days of their apprenticeship.

The above incentive payments are in addition to the existing funding arrangement of £1,000 for every apprentice aged 16 – 18. This existing incentive is paid in 2 equal instalments at or around day 90 and day 365.

So if you employ a new Apprentice aged 16 – 18 before 31st January 2021 you’d be entitled to funding of £3,500 per apprentice.

Apprenticeship routes include:

Customer Service Apprenticeship

Business Administration Apprenticeship

Management Apprenticeships

Health & Social Care

Sport & Leisure

Other Apprentice routes are also available, just let us know and we can point you in the right direction.

If you like some more information, please do not hesitate to email us or give us a call.

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