Cornwall small firms can now claim £2,000 per young apprentice

If you run a small business and you’ve been weighing up taking on a young apprentice, the sums changed today. A new government payment puts £2,000 straight into your account for every 16 to 24-year-old apprentice you recruit, and it can be backdated.

The incentive started on 1 October and is aimed at small and medium sized businesses across the UK, including firms here in Cornwall.

Who can claim the £2,000

The payment is open to any UK-based employer that doesn’t currently pay the Apprenticeship Levy.

To get it, the apprentice has to be:

• aged 16 to 24
• on the employer’s PAYE scheme
• on the employer’s apprenticeship service account

If both of those accounts are in order, the payment is made automatically.

How the money is paid

The £2,000 comes as a direct cash payment in two instalments of £1,000. The first lands after 90 days and the second after 365 days.

Already taken someone on?

The incentive can be backdated for apprentices who have joined the business within the last three months.

What else employers already get

The new payment sits on top of the support that’s already in place. That includes:

• £1,000 to support apprentices in the workplace at the start of their training, for young new starters aged 16 to 18
• no employer’s National Insurance on apprentices under 25

Small and medium sized businesses also pay nothing towards training for apprentices under 25, because the government fully funds it. For apprentices over 25, smaller employers cover 5% of the training costs.

Larger businesses (those with an annual salary bill of £3m or more) have their apprentice training paid for out of their Apprenticeship Levy pot.

‘More attractive than ever’

Kiran Kapur, CEO of Cambridge Marketing College, said the change makes hiring an apprentice even more appealing for employers.

She said: “It is now even more attractive than ever for smaller businesses to hire an apprentice. Not only do they receive government-backed and funded training free of charge, but employers can now also receive a £2,000 boost for every apprentice they hire.

“Traditional education routes often leave young people with plenty of theoretical knowledge, but little practical day-to-day work skills. Apprenticeships can act as a solution to this problem, blending on-the-job training with learning.

“As apprenticeships can be tailored toward your specific business needs, targeted training addresses any skill-gaps you may have, as well as helping your team feel valued and with a clear structured pathway for career progression.”

Kiran added that there are currently 939 apprenticeships available to employers.

“Whatever knowledge, skills and abilities are needed to help your team meet their objectives, there is usually an apprenticeship to fit.”

About Cambridge Marketing College

Founded in 1991, Cambridge Marketing College provides marketing, PR, AI and corporate social responsibility courses, all taught online. It says its apprenticeship pass rate is 94%, with current distinction rates of 76%.

Alongside CIM and CIPR qualifications, it offers apprenticeships, apprenticeship units and short courses, including government-funded units designed to help business leaders bring AI into their organisations.

📷young apprentice with professional metallurgist