Double Boost for Non-Levy paying employers

The government has announced that non-levy paying employers can now recruit up to ten apprentices through the apprenticeship service as well as benefiting from the incentive payment for hiring new apprentices.

In a new document outlining how apprenticeship funding will work from August 2020 published on July 14th 2020 the Education Skills Funding Agency (ESFA) said:

“For the remainder of the financial year 2020-21, the number of ‘active’ or ‘used’ reservations available to non-levy payers at any given time will increase from three to 10.”


Employers who do not pay the apprenticeship levy have been able to create accounts on the apprenticeship service and reserve funding since January 2020 but it was capped at three Apprentices. Moving away from the use of Government-procured contracts for apprenticeship training gives smaller employers greater control over their apprenticeship choices.

Incentive payment

In recognition of the value apprentices can bring… an incentive payment will be made to employers who hire an apprentice between 1 August 2020 and 31 January 2021. There will be two levels of payment based on age. For apprentices aged 16-24 the payment will be £2,000, and for apprentices aged 25 or over the payment will be £1,500. Read more about the incentive payment for apprentices.

Apprenticeships are a great way for employers to add value to their business. Don’t take our word for it, listen to our customers.

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