SETA News

Extension to cash boost for employers

The chancellor, Rishi Sunak, has unveiled his one-year spending review for 2021-22. This extends some of the Government financial support to help boost the economy. His number one priority is to protect jobs and livelihoods across the UK.

He said “This spending review will ensure hundreds of thousands of jobs are supported and protected in the acute phase of this crisis and beyond with a multi-billion package of investment to ensure that no one is left without hope or opportunity”.

What does this mean for Apprenticeships? 

In the chancellor’s summer 2020 statement, he revealed that from August to January, any firm that hires a new young apprentice aged 16 to 24 will receive £2,000 – on top of the existing £1,000 incentive for 16 to 18s – while those that hire new apprentices aged 25 and over will be paid £1,500.

The great news is that Mr Sunak has now extended this incentive scheme to 31 March 2021.

He also announced that the national minimum wage for apprentices will increase in April 2021 from £4.15 to £4.30 per hour

Apprenticeship levy flexibilities

The chancellor Rishi Sunak has unveiled his one-year spending review for 2021-22. This extends some of the Government financial support to help boost the economy. His number one priority is to protect jobs and livelihoods across the UK.

Following longstanding sector-wide concerns that the levy is too restrictive on employers, Sunak announced how the government plans to “improve the way the system works”.

From August 2021, employers who pay the levy will be able to transfer unspent levy funds “in bulk to small and medium-sized enterprises (SMEs) with a new pledge function”.

Unspent levy funds will still expire after 24 months but the government will also introduce, from the same month, a “new online service to match levy payers with SMEs that share their business priorities”.

From April 2021, employers in construction, followed by health and social care, will be allowed to “front-load training for certain apprenticeship standards”.

And during 2021-22, the government will “test approaches to supporting apprenticeships in industries with more flexible working patterns, including consideration of how best to support apprenticeship training agencies”.

Source – FE Week.co.uk

Comment...

Association of Employment and Learning Providers managing director Jane Hickie said the extension of the apprenticeship hiring incentive “could be an important boost to the recovery efforts, especially among smaller businesses where the first set of incentives has proved particularly attractive”.

He said “This spending review will ensure hundreds of thousands of jobs are supported and protected in the acute phase of this crisis and beyond with a multi-billion package of investment to ensure that no one is left without hope or opportunity”.

Association of Colleges chief executive David Hughes said: “The steps set out are the right things to do given the effects of the pandemic look set to be with us for longer than most people expected. Extending the apprenticeship incentive scheme, Kickstart and traineeships are certainly helpful in the short term and will help to support the increasing numbers of young people that need opportunities.

Julie Gough, Managing Director of SETA, said “The extension to the apprenticeship recruitment incentive is very welcome as it will enable employers who were perhaps unsure of taking on an apprentice as it will go some way to helping with the costs of a new employee.”

 

Contact us

To discuss the Government incentives please contact Nikita Allum, responsible for Government Funding and Contracts Management at SETA. If you are interested in taking on a new apprentice please contact Nick Hinks, Business Development Manager.

Nikita Allum – nallum@seta-training.co.uk – 023 8180 0746
Nick Hinks – nhinks@seta-training.co.uk – 07946 476817

 

 

 

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