How to take on an apprentice

Setting up an apprenticeship service account

From April 2021, all new apprenticeships will be funded and managed through the apprenticeship service. You can create an account here. 

Before setting up your apprenticeship service account you will need: 

  • an email address you have access to
  • the Government Gateway login for your organisation (or you can use the accounts office reference number and employer PAYE scheme reference number if your annual pay bill is less than £3 million)
  • authority to add PAYE schemes to the account 
  • authority to accept the employer agreement on behalf of your organisation 

You will be asked to: 

  • create an account 
  • add a PAYE scheme on behalf of your organisation 
  • accept the employer agreement with the ESFA
 


Funding apprenticeships

Levy paying employers

  • If your organisation has a wage bill over £3m, you can access funding via the Apprenticeship Levy.
  • The government will apply a 10% top up to the funds you have to spend in your account. 

Non-levy paying employers

  • If your organisation has more than 50 employees, you pay just 5% towards the cost of training and assessing an apprentice. You will pay your 5% contribution to us (your training provider) over the lifetime of the apprenticeship. 
  • If your organisation has less than 50 employees, the government will pay 100% of the apprenticeship training costs.
  • You will need to reserve funds for apprenticeship training via your apprenticeship service account.

 


Financial incentives for new apprentices

If you choose to hire a new apprentice before 30 September 2021 you are eligible for a financial incentive.

Apprentices who joined your organisation between 1 August 2020 and 31 March 2021 (you must apply for these apprentices before 31 May 2021)

Age of apprentice Previous incentive New incentive Total incentive
16 – 18 or under 25 with an education health and care plan or who has been in the care of their local authority £1,000 £2,000 £3,000
19 – 24 – £2,000 £2,000
Over 25 – £1,500 £1,500

 

Apprentices who joined your organisation from 1 April 2021 (you can apply for incentive payments for these apprentices from 1 June 2021) 

Age of apprentice Previous incentive New incentive Total incentive
16 – 18 or under 25 with an education health and care plan or who has been in the care of their local authority £1,000 £3,000 £4,000
19 – 24 – £3,000 £3,000
Over 25 – £3,000 £3,000

What can you use the payment for?

You can spend the financial incentive on anything to support your organisation’s costs. For example, on uniforms, your apprentice’s travel or their salary. You do not have to pay it back.

Eligibility

You can only apply for new apprentices who joined your organisation between 1 August 2020 and 30 September 2021. You cannot apply for an existing employee who joined your organisation before 1 August 2020, even if they started an apprenticeship after this date.



Terms, conditions and pay

To employ an apprentice, you need to check and meet the following terms and conditions. 

Your apprentice should:

  • be 16 years old or older by the end of the summer holidays
  • not be in full-time education 
  • work in a role that is relevant to their apprenticeship 
  • work enough paid hours each week to undertake sufficient training to achieve their apprenticeship

Apprentices can be new employees or current employees already working for you. 

You must: 

  • pay your apprentice at least the national minimum wage for apprentices.
  • give your apprentice a job role (or roles) that enables them to gain the knowledge, skills and behaviours they need to achieve their apprenticeship. 
  • allow your apprentice to combine learning in the workplace with formal off-the-job training.
  • pay them for the time they are in work and in off-the-job training. 
  • give your apprentice a contract of employment that is at least long enough to allow them to complete their apprenticeship successfully. 


Off-the-job training

Off-the-job training means training done by the apprentice that is separate to their normal role. This is facilitated by us (your training provider). 

At least 20% of an apprentice’s normal working hours must be used for off-the-job training. This ensures your apprentice will have the knowledge, skills and behaviours they need for their chosen occupation. 

Your apprentice may also need to study for Maths and English qualifications.