Cash incentive for SMEs extended into New Year

Cash Incentive

GBP1,500 grant still available for apprentice employers in 2013

The Government has announced that the cash incentive offered to employers to hire apprentices will continue into 2013. The GBP1,500 Apprenticeship Grant for Employers (AGE) of 16 to 24 year olds, introduced in February 2012, intended to give businesses the chance to improve their workforce by hiring apprentices.

Due to the success of this scheme and positive employer feedback, the grant will be available for another year. In addition, the grant has been extended so that small and medium enterprises (SMEs) will be able to claim for a maximum of ten young people.

Vice Cable, Business Secretary said: “I know it can be a big decision for busy small companies to take on an apprentice. Employers may be concerned about the time recruitment and training will take, and anxious about how it will work. So the £1500 grant is a token to acknowledge this and thank employers. I hope many more people will take us up on our cash incentive to grow their business, and train up the workforce of the future.”

Other changes to the scheme are:

  • It is now available for larger businesses of up to 1000 employees.
  • Employers can claim for up to 10 apprentices.
  • The time between an employer last taking on an apprentice and applying for the grant is now a year.
  • The grant is now paid in one lump sum.

Now with over 250 skills and industries, 1,400 job roles and three apprenticeships levels, The National Apprenticeship Service (NAS) hopes that more employers will consider hiring apprentices.