Employer Incentive (AGE 16 to 24)

The National Apprenticeship Service (NAS) has announced a new employer incentive scheme called 'AGE 16 to 24' which is aimed at helping eligible employers to offer young people aged 16 to 24 employment through the Apprenticeship programme, by providing wage grants to assist employers in recruiting their first apprentice.

The new incentive scheme is designed to encourage small and medium sized employers to take on new apprentices aged 16 to 24 by providing 40,000 grants up to the value of £1,500. The £1,500 is in addition to the training costs of the Apprenticeship framework which are met in full for young people aged 16 to 18 and 50% for those aged 19 to 24.

The £1,500 grant is payable in two instalments for eligible employers who commit to employ one or more 16 to 24 year old apprentices for the first time and is exempt from VAT.

The scheme will be available from 1st April 2012 until 31st March 2013 for employers who are able to offer a job opportunity to a young person. However eligible employers who have employed a new apprentice from 1st February 2012 will be able to apply for a grant subject to all of the eligibility criteria.

In terms of eligibility, priority will be given to small and medium sized employers with less than 250 employees. Large employers (more than 250 employees) are not eligible for support through this scheme. However NAS do want to encourage take up within the large employers small and medium enterprises (SME) supply chain.

Subject to budget availability and the employer's commitment to support the apprentice to the end of their programme, up to 3 grants can be made to any one employer. However, the employer must commit to the total number of apprentices they wish to take on through the grant at the upfront agreement stage.

Employers will sign an agreement which will include:

• Confirmation of the number of apprentices they will be taking on as a result of this incentive (to a maximum of 3)
• Confirmation that they wouldn't have taken the apprentice on without this additional incentive.
• A commitment to employ the apprentice for at least the time it takes to achieve the Apprenticeship framework. If they fail to do this, some or all the wage allowance will be clawed back.
• Confirmation that they are aware of and do not breach any state aid rules.
• Agreement to pay the minimum Apprenticeship wage of £2.60 per hour - although this is a minimum and most employers pay more.
• Confirmation that they have not taken on an apprentice in the previous three years
   

Contact us today to find out how this grant will benefit your business.