Trainee and apprentice bonus schemes – a quick guide
New Trainee and Apprentice bonus schemes were announced on 8 July 2020 by Chancellor Rishi Sunak.
The Government investment is part of a wider economic plan to help avoid high unemployment levels following coronavirus. It commits the Government to the creation of 30,000 new traineeships as well as new financial incentives for employers taking on trainees and apprentices.
Access Training has been providing apprenticeships and traineeships since the 1990s and fully recognises their role in improving the employability of young people.
We’ve put together a helpful guide on everything you need to know about the new bonus schemes.
What is an apprenticeship?
An apprenticeship is vocational training which results in an Apprenticeship qualification. Participating employers must pay their apprentices the Minimum Apprentice Wage.
What is the apprentice bonus scheme?
A new payment of £2,000 was announced by Government in July 2020. The payment will be offered to any business taking on a new apprentice aged between 16 and 24 during the period 1 August 2020 – 31 January 2021.
This payment is in addition to the existing incentive of £1,000 per 16 -18 year-old (or 19 - 24 year old care leavers).
Businesses taking on apprentices over the age of 25 during this period will qualify for a payment of £1,500.
To support small employers with fewer than 50 employees, 100% of the Apprenticeship costs for learners aged 16-18 are met by the Government.
What is a traineeship?
A traineeship is an unpaid work placement. It provides young people aged between 16 and 24 with valuable experience of the world of work, helping them to make the decision on whether to pursue an apprenticeship, job or further education.
For employers, it offers the benefit of an extra pair of hands.
How long do traineeships last?
A traineeship can last between six weeks and six months, with the work experience element covering a minimum period of 60 – 90 hours.
As well as unpaid work experience with an employer, trainees receive support from Access Training with their Maths, English and CV writing.
Will my company receive any payment for offering a traineeship?
Yes. The UK Government announced on 8 July 2020 that all participating businesses will now qualify for a £1,000 grant when they offer a traineeship to a young person.
This new incentive is being introduced in September 2020.
Is there any cost to my business?
There is no cost to your business. However, you can choose to make a contribution towards the learner’s meal allowance and travel.
Is there a limit to the number of trainees I can take on?
There is a limit of ten traineeships per business.
What happens after the traineeship?
Companies offering a Traineeship learner a progression into an apprenticeship or job will qualify for a grant of up to £1,000.
How do I get involved?
Businesses interested in learning more about the apprenticeship or traineeship bonus are invited to contact the team at Access Training through the contact form.