Chancellor Rishi Sunak has announced his budget for 2021 and it affects the apprenticeship world in a BIG way. Incentives for recruiting an apprentice have been extended and grant payments have increased. A new scheme called ‘Portable Apprenticeships’ is to be set up, plus a new UK wide management training programme to upskill 30,000 SME’s and more. The focus of these new initiatives is very much on, “protecting, creating, and supporting jobs”.
Extension of Incentives & New £3000 Cash Grants for Employers
Perhaps the biggest announcement to affect the world of apprenticeships is the extension of the incentive scheme to hire apprentices. The scheme was originally going to end on March 31st 2021 but will now continue until 30th September 2021. Furthermore, employers will now receive £3000 for every new employee who starts employment after 1st April 2021 and is enrolled onto an apprenticeship (any age) with them, before the cut-off date. In addition to this, there is no employers NI payable for any member of staff doing an apprenticeship up to the age of 25, so there are more employer saving to be made. The new cash incentives will be paid directly by the government to employers.
From July 2021, the Government will introduce a £7 million fund to help employers in England set up and expand new ‘portable apprenticeships.’ The idea being, individuals who need to work across multiple projects with different companies, benefit from long-term training that an apprenticeship can provide. This will also give employers access to an apprenticeship talent pipeline.
This scheme will be particularly beneficial for individuals working in the creative sectors who often work for many employers over short periods of time.
New ‘Help To Grow’ Management programme
From June 2021, small businesses will be able to access a 12 week-programme delivered by business schools across the UK.
The programmes will cover financial management, innovation and digital adoption. The idea being, by the end of the programmes, participants will be able to develop a ‘tailored business growth plan’ to help make business decisions.
There are 30,000 places available over a 3 year time period and the government will pay 90% of the cost. Participants will need to be senior managers, to be eligible and will need to contribute £750 towards the cost.
There are also longer Leadership and Management apprenticeships available covering first line management and senior operational management. For more information see Leadership and Management Apprenticeships.
Other Announcements Affecting Apprenticeships
- The extension of the Coronavirus Job Retention Scheme (Furlough) until September 2021. You can read more about Furlough and Apprenticeships in this blog – How Furlough Impacts Apprenticeships.
- £126 million allocation to create 40,000 more Traineeships, financing work placements and training for 16–24-year-olds in the 2021/22 academic year.
- A new pilot scheme for new technologies, with an aim of supporting individuals to find new opportunities which are suited to their experience and skills.
See the latest timetables here.
You can also contact us by filling in the form below: